Howzat? The clamour to legalise sports betting in India

Published

5 February 2016

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By Sameer Hashmi

Mumbai Business reporter

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

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

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

Five minutes earlier his cash 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 modification," he tells his bookmaker on the phone.

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

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

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

Besides horse racing, sports betting wagering of any kind is not allowed in India. Despite that, prohibited sports betting syndicates prosper in the country.

'Black money'

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

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

The majority of these transactions include so-called "black money", which is cash 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 forbiding web gambling, there is absolutely nothing similar here.

And offshore wagering companies are utilizing this loophole to tempt Indians. Although there are no online wagering operators based out of India, a lot individuals have signed up accounts with overseas firms.

"Legally you can escape [with this], as the law is ambiguous for online gaming," states Mumbai- based lawyer HP Ranina.

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

Calls for legalisation

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

The Justice RM Lodha Commission was set up to suggest modifications in the functioning of India's cricket regulatory body, the Board of Control for Cricket in India (BCCI), after the 2013 Indian Premier League wagering scandal came to light.

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

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

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

"I do not mind paying some money out my profits, as long as I can gamble publicly," states our cricket gambler.

It would also open a huge company opportunity for certified bookmakers and global online wagering companies to set up operations in India.

And it would help limit match repairing in cricket and other sports betting, argue lots of, by assisting make deals included in gambling more transparent.

"If you work together with wagering companies, you will have a very efficient approach of stamping out match fixing," states George Oborne, who runs a mock wagering site, India Bet.

But lots of likewise believe, that the taxes levied on the bettor and the bookie will need to be affordable to make it attractive enough for them to bet lawfully.

However, there are constraints.

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

He includes that individuals who use unaccounted money to position huge bets will never ever gamble legally.

Approval concern

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

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

And considered that India has a federal structural - each state will have 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 quickly."

Yet with the concept having been endorsed by a main panel for the first time, at least a debate has actually ignited around a subject - which previously was considered a taboo.