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 go to win versus Australia.

In his two-bedroom home located in main Mumbai, a middle-aged guy is seeing the video game, nervously. He's sitting on the edge of his grey colour sofa with his mobile phone glued to his right-hand man.

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

Five minutes earlier his cash was on Australia, today as the Indian batsman gets all set to face the last over he's changed his mind.

"I believe India is winning, make the change," he informs his bookmaker 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 actually made $200 today," he says with a childish 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.

Aside from horse racing, sports betting wagering of any kind is not allowed in India. Despite that, illegal sports betting syndicates flourish in the nation.

'Black money'

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.

With no legal avenue, punters position bets using their phones by making calls to bookmakers. Gamblers can wager on anything associated to the cricket match, from who is winning to the greatest specific run scorer.

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

The 1867 Public Gambling Act bars any sort of gaming 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 using this loophole to entice Indians. Although there are no online wagering operators based out of India, a lot individuals have registered accounts with overseas firms.

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

But despite this, it is "offline sports betting", done through phone calls which control the marketplace.

Calls for legalisation

The clamour to legalise wagering in cricket has actually grown after a panel designated by India's Supreme Court proposed the concept, saying 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 functioning 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 banned for two years after some players and team authorities were condemned of repairing parts of the match at the request of bookmakers.

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

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

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

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

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

"If you work alongside wagering business, you will have a really effective method of stamping out match repairing," states George Oborne, who runs a mock sports betting site, India Bet.

But numerous also think, that the taxes levied on the bettor and the bookmaker will have to be reasonable to make it appealing enough for them to gamble legally.

However, there are constraints.

"Definitely there will be unlawful sports betting since (some) individuals wouldn't want to leave an audit path by entering the white market," says Mr Oborne.

He adds that people who use unaccounted money to put big bets will never bet lawfully.

Approval question

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

"Although lots of people are included in some sort of sports betting - it's still a questionable issue for many," states our unnamed punter.

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

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

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