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 central Mumbai, a middle-aged man is viewing the game, nervously. He's sitting on the edge of his grey colour couch with his mobile phone glued to his right hand.

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

Five minutes earlier his money was on Australia, now as the Indian batsman prepares to deal with the last over he's altered his mind.

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

And a couple of minutes later his prediction becomes a reality, as India wins the match in a nail-biting surface.

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

For more than three decades he's been banking on cricket matches. We can't expose his name as what he's doing is prohibited in India.

Other than horse racing, sports betting wagering of any kind is not allowed in India. Despite that, unlawful wagering syndicates grow in the country.

'Black cash'

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

Without any legal avenue, punters put 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 greatest private run scorer.

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

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

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

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

But regardless of 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 grown after a panel appointed by India's Supreme Court proposed the concept, saying it would assist clamp down on corruption in the country's preferred sport.

The Justice RM Lodha Commission was established to suggest modifications in the performance 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 banned for two years after some players and group authorities were condemned of fixing parts of the match at the request of bookies.

The panel also argues that legalised sports betting 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 cash out my profits, as long as I can gamble publicly," says our cricket gambler.

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

And it would assist restrict match repairing in cricket and other sports betting, argue numerous, by assisting make deals involved in gambling more transparent.

"If you work together with sports betting business, you will have a really reliable method of marking out match repairing," states George Oborne, who runs a mock sports betting website, India Bet.

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

However, there are constraints.

"Definitely there will be illegal sports betting because (some) people wouldn't want to leave an audit path by going into the white market," says Mr Oborne.

He adds that people who use unaccounted money to place huge bets will never ever gamble lawfully.

Approval concern

For sports betting gambling to be legalised, parliamentary approval will be required to develop a new law, and politically this will be a hard idea to offer.

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

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

"The procedure is so long and difficult 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 actually been endorsed by a main panel for the very first time, at least a debate has actually fired up around a topic - which till now was thought about a taboo.