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 go to win against Australia.

In his two-bedroom house located in central Mumbai, a middle-aged guy is seeing the game, nervously. He's sitting on the edge of his grey colour couch with his smart phone glued to his right hand.

He has made more than 10 calls in the last thirty minutes - not to discuss the match however to keep modifying his bet.

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

"I think India is winning, make the change," he tells his bookie on the phone.

And a few minutes later on his prediction comes to life, as India wins the match in a nail-biting finish.

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

For more than 3 decades 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 of any kind is not allowed India. Despite that, unlawful wagering distributes flourish in the country.

'Black cash'

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

Without any legal avenue, punters place bets using their phones by making calls to bookies. Gamblers can bank on anything related 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 declared to the taxman.

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

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

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

But despite this, it is "offline gambling", done through phone calls which dominate the market.

Calls for 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 assist secure down on corruption in the country's preferred sport.

The Justice RM Lodha Commission was set up to recommend modifications in the functioning 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 team officials were condemned of fixing parts of the match at the behest of bookmakers.

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

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

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

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

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

"If you work together with wagering business, you will have a really reliable technique of marking out match fixing," says George Oborne, who runs a mock wagering website, India Bet.

But numerous also believe, that the taxes levied 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 sports betting because (some) individuals wouldn't desire to leave an audit path by going into the white market," says Mr Oborne.

He includes that people who utilize unaccounted money to put big bets will never bet lawfully.

Approval concern

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 idea to sell.

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

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

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

Yet with the idea having been endorsed by a main panel for the very first time, at least a debate has fired up around a subject - which previously was considered a taboo.