Howzat? The clamour to legalise sports betting wagering in India

Published

5 February 2016

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By Sameer Hashmi

Mumbai Business press reporter

It is the last over of the cricket match, with India requiring 17 runs to win versus Australia.

In his two-bedroom home situated in main Mumbai, a middle-aged guy is enjoying the game, nervously. He's sitting on the edge of his grey colour sofa with his mobile phone glued to his right-hand man.

He has made more than 10 employ the last 30 minutes - not to discuss the match however to keep revising his bet.

Five minutes previously his money was on Australia, and now as the Indian batsman prepares to deal with the last over he's changed his mind.

"I believe India is winning, make the change," he tells his bookmaker on the phone.

And a few minutes later on his forecast becomes a reality, as India wins the match in a nail-biting finish.

"I have made $200 today," he says with a childlike glee.

For more than three decades he's been banking on cricket matches. We can't reveal his name as what he's doing is unlawful in India.

Besides horse racing, sports betting of any kind is not allowed India. Despite that, unlawful wagering distributes flourish in the country.

'Black money'

According to the Doha-based International Centre for sports betting Security, India's unlawful sports betting wagering market deserves some $150bn a year. And much of that gambling money is directed towards cricket.

With no legal opportunity, punters place bets using their phones by making calls to bookmakers. Gamblers can bet on anything associated to the cricket match, from who is winning to the greatest specific run scorer.

Most of these deals involve so-called "black cash", which is money not declared to the taxman.

The 1867 Public Gambling Act bars any type of gaming in India, but unlike in the US which has a law prohibiting internet sports betting, there is nothing comparable here.

And overseas sports betting business are using this loophole to draw Indians. Although there are no online wagering operators based out of India, a lot people have actually signed up accounts with offshore firms.

"Legally you can escape [with this], as the law is unclear for online gaming," says Mumbai- based attorney HP Ranina.

But regardless of this, it is "offline gaming", done through telephone call which control the market.

Require legalisation

The clamour to legalise wagering in cricket has grown after a panel appointed by India's Supreme Court proposed the idea, saying it would help secure down on corruption in the nation's favourite sport.

The Justice RM Lodha Commission was established to recommend changes in the performance of India's cricket regulative body, the Board of Control for Cricket in India (BCCI), after the 2013 Indian Premier League wagering scandal emerged.

Two franchises have actually been prohibited for 2 years after some players and group authorities were found guilty of fixing parts of the match at the wish of bookies.

The panel likewise argues that legalised sports betting will generate tax incomes for the exchequer that might total up to $2bn a year.

Even bettors feel that legalising sports betting is a move in the right instructions.

"I don't mind paying some money out my earnings, as long as I can gamble publicly," says our cricket gambler.

It would also open a huge company chance for licensed bookies and worldwide online sports betting business to set up operations in India.

And it would assist limit match repairing in cricket and other sports betting, argue many, by assisting make deals involved in sports betting more transparent.

"If you work alongside sports betting business, you will have an extremely efficient method of stamping out match repairing," says George Oborne, who runs a mock sports betting website, India Bet.

But many also think, that the taxes imposed on the bettor and the bookmaker will have to be affordable to make it appealing enough for them to gamble lawfully.

However, there are constraints.

"Definitely there will be prohibited wagering since (some) individuals would not wish to leave an audit trail by going into the white market," states Mr Oborne.

He includes that individuals who utilize unaccounted cash to place big bets will never gamble legally.

Approval concern

For sports betting gambling to be legalised, parliamentary approval will be needed to create a new law, and politically this will be a hard concept to offer.

"Despite the fact that lots of people are involved in some sort of gaming - it's still a questionable concern for numerous," states our unnamed punter.

And provided that India has a federal structural - each state will have to also pass a separate law to legalise sports betting in their territory.

"The procedure is so long and challenging that it will take years," states Mr Ranina."That's why, we are negative about this coming true anytime quickly."

Yet with the idea having been endorsed by an official panel for the very first time, at least a dispute has ignited around a subject - which until now was thought about a taboo.