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 requiring 17 go to win against Australia.

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

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

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

"I believe India is winning, make the change," he tells his bookie 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 states with a childlike 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 unlawful in India.

Other than horse racing, sports betting of any kind is not enabled in India. Despite that, unlawful sports betting distributes thrive 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 gambling cash is directed towards cricket.

Without any legal avenue, punters place bets utilizing their phones by making calls to bookies. Gamblers can bank on anything associated to the cricket match, from who is winning to the highest individual run scorer.

The majority of these transactions include so-called "black cash", which is cash not stated to the taxman.

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

And overseas sports betting companies are utilizing this loophole to draw Indians. Although there are no online wagering operators based out of India, a lot individuals have actually registered accounts with offshore firms.

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

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

Require legalisation

The clamour to legalise sports betting in cricket has actually grown after a panel appointed by India's Supreme Court proposed the concept, stating it would assist secure down on corruption in the nation's preferred sport.

The Justice RM Lodha Commission was set up to recommend 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 wagering scandal emerged.

Two franchises have been prohibited for 2 years after some players and team officials were condemned of repairing parts of the match at the wish of bookmakers.

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

Even gamblers feel that legalising sports betting is a move in the best instructions.

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

It would also open a substantial business opportunity for certified bookies and global online wagering companies to establish operations in India.

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

"If you work together with wagering companies, you will have a really reliable approach of stamping out match repairing," states George Oborne, who runs a mock wagering website, India Bet.

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

However, there are limitations.

"Definitely there will be illegal wagering since (some) individuals wouldn't desire to leave an audit trail by getting in the white market," says Mr Oborne.

He adds that people who utilize unaccounted cash to put big bets will never ever bet lawfully.

Approval question

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

"Although many people are associated with some sort of gambling - it's still a questionable problem for many," states our unnamed punter.

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

"The procedure is so long and challenging that it will take years," says Mr Ranina."That's why, we are cynical about this becoming a reality anytime quickly."

Yet with the concept having actually been backed by an official panel for the very first time, at least an argument has actually fired up around a subject - which up until now was thought about a taboo.