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 against Australia.

In his two-bedroom house located in central Mumbai, a middle-aged guy is watching the game, nervously. He's resting on the edge of his grey colour sofa with his mobile phone glued to his ideal hand.

He has actually made more than 10 contact the last 30 minutes - not to discuss the match but to keep modifying his bet.

Five minutes earlier his cash was on Australia, today as the Indian batsman prepares to face the last over he's altered his mind.

"I think India is winning, make the modification," he informs his bookie on the phone.

And a couple of 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 childish glee.

For more than 3 years he's been banking on cricket matches. We can't reveal his name as what he's doing is prohibited in India.

Other than horse racing, sports betting wagering of any kind is not permitted in India. Despite that, prohibited sports betting distributes grow in the country.

'Black cash'

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

Without any legal opportunity, punters position bets using their phones by making calls to bookmakers. Gamblers can bank on anything related to the cricket match, from who is winning to the highest specific run scorer.

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

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

And overseas wagering companies are utilizing this loophole to lure Indians. Even though there are no online sports betting operators based out of India, a lot individuals have actually signed up accounts with offshore firms.

"Legally you can get away [with this], as the law is unclear for online gambling," says Mumbai- based legal representative HP Ranina.

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

Require legalisation

The clamour to legalise wagering in cricket has grown after a panel selected by India's Supreme Court proposed the idea, stating it would help secure down on corruption in the country's preferred 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 sports betting scandal came to light.

Two franchises have been prohibited for two years after some gamers and group officials were condemned of fixing parts of the match at the behest of bookmakers.

The panel likewise argues that legalised wagering will bring in tax earnings for the exchequer that might total up to $2bn a year.

Even bettors feel that legalising sports betting wagering is a move in the ideal direction.

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

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

And it would help restrict match fixing in cricket and other sports betting, argue numerous, by helping make deals involved in gambling more transparent.

"If you work along with wagering companies, you will have a really effective technique of stamping out match repairing," states George Oborne, who runs a mock sports betting website, India Bet.

But numerous also believe, that the taxes levied on the gambler and the bookmaker will need to be reasonable to make it appealing enough for them to gamble lawfully.

However, there are limitations.

"Definitely there will be unlawful wagering due to the fact that (some) individuals wouldn't wish to leave an audit trail by entering the white market," says Mr Oborne.

He includes that individuals who use unaccounted cash to put huge bets will never ever bet legally.

Approval concern

For sports betting to be legalised, parliamentary approval will be required to create a brand-new law, and politically this will be a tough idea to sell.

"Even though many individuals are involved in some sort of gambling - it's still a questionable concern for many," says our unnamed punter.

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

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

Yet with the concept having actually been backed by an official panel for the very first time, at least a debate has ignited around a subject - which previously was thought about a taboo.