Howzat? The clamour to legalise sports betting 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 needing 17 runs to win versus Australia.

In his two-bedroom house located in central Mumbai, a middle-aged male is enjoying the game, nervously. He's resting on the edge of his grey colour sofa with his cellphone glued to his right-hand man.

He has made more than 10 hire the last 30 minutes - not to go over the match but to keep modifying his bet.

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

"I believe India is winning, make the change," 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 surface.

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

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

Besides horse racing, sports betting wagering of any kind is not permitted in India. Despite that, unlawful wagering syndicates grow in the country.

'Black cash'

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

Without any legal opportunity, punters position bets utilizing their phones by making calls to bookmakers. Gamblers can bet on anything related to the cricket match, from who is winning to the greatest private run scorer.

The majority of these transactions involve so-called "black money", which is money not declared to the taxman.

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

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

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

But regardless of this, it is "offline gambling", done through phone calls which control the market.

Calls for legalisation

The clamour to legalise wagering in cricket has grown after a panel designated by India's Supreme Court proposed the idea, stating it would assist clamp down on corruption in the nation's preferred sport.

The Justice RM Lodha Commission was established to suggest changes in the performance of India's cricket regulatory 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 banned for two years after some gamers and team officials were condemned of repairing parts of the match at the wish of bookmakers.

The panel also argues that legalised sports betting will bring in tax earnings for the exchequer that might amount to $2bn a year.

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

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

It would likewise open a huge business opportunity for licensed bookmakers and international online sports betting business to establish operations in India.

And it would help limit match fixing in cricket and other sports betting, argue many, by helping make transactions associated with gambling more transparent.

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

But many also believe, that the taxes imposed on the bettor and the bookmaker will have to be reasonable to make it attractive enough for them to bet lawfully.

However, there are limitations.

"Definitely there will be unlawful wagering because (some) people wouldn't desire to leave an audit path by going into the white market," states Mr Oborne.

He adds that people who use unaccounted cash to position huge bets will never gamble lawfully.

Approval question

For sports betting gambling to be legalised, parliamentary approval will be needed to produce a brand-new law, and politically this will be a tough concept to sell.

"Despite the fact that lots of people are associated with some sort of sports betting - it's still a questionable concern for numerous," states our unnamed punter.

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

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

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