Howzat? The clamour to legalise sports betting wagering 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 male is enjoying the video game, nervously. He's sitting on the edge of his grey colour couch with his mobile phone glued to his best hand.

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

Five minutes previously his cash was on Australia, but now 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 comes real, as India wins the match in a nail-biting finish.

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

For more than three years he's been sports betting 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 in India. Despite that, illegal sports betting syndicates prosper in the country.

'Black cash'

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

With no legal opportunity, punters place bets using 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.

Most of these transactions include so-called "black cash", which is cash not declared to the taxman.

The 1867 Public Gambling Act bars any type of gambling in India, however unlike in the US which has a law forbiding internet gambling, there is nothing comparable here.

And offshore wagering business are utilizing this loophole to entice Indians. Despite the fact that there are no online wagering operators based out of India, a lot people have signed up accounts with offshore firms.

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

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

Require legalisation

The clamour to legalise sports betting 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 favourite sport.

The Justice RM Lodha Commission was set up 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 wagering scandal came to light.

Two franchises have been banned for two years after some players and team officials were condemned of repairing parts of the match at the request of bookmakers.

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

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

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

It would also open a substantial company chance for certified bookmakers and international online sports betting business to establish operations in India.

And it would assist restrict match repairing in cricket and other sports betting, argue lots of, by helping make transactions associated with sports betting more transparent.

"If you work along with wagering business, you will have an extremely effective approach of stamping out match repairing," says George Oborne, who runs a mock wagering website, India Bet.

But many also think, that the taxes levied on the gambler and the bookmaker will have to be affordable to make it appealing enough for them to bet lawfully.

However, there are constraints.

"Definitely there will be unlawful sports betting due to the fact that (some) people would not wish to leave an audit path by going into the white market," states Mr Oborne.

He adds that people who utilize unaccounted money to position big bets will never ever gamble lawfully.

Approval question

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

"Although lots of people are involved in some sort of gambling - it's still a controversial concern for numerous," says our unnamed punter.

And considered that India has a federal structural - each state will have to likewise pass a different law to legalise sports betting in their area.

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

Yet with the idea having been endorsed by a main panel for the very first time, a minimum of a debate has fired up around a subject - which till now was thought about a taboo.