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 needing 17 runs to win against Australia.

In his two-bedroom home located in central Mumbai, a middle-aged guy is enjoying the video game, nervously. He's resting 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 go over the match but to keep modifying his bet.

Five minutes earlier his money was on Australia, today as the Indian batsman gets prepared to deal with the last over he's changed his mind.

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

And a couple of minutes later on his forecast comes true, as India wins the match in a nail-biting finish.

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

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

Besides horse racing, sports betting wagering of any kind is not permitted in India. Despite that, unlawful wagering distributes thrive in the nation.

'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 gambling money is directed towards cricket.

Without any 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 include so-called "black money", which is cash not declared to the taxman.

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

And offshore wagering business are utilizing this loophole to tempt Indians. Even though there are no online wagering operators based out of India, a lot people have actually signed up accounts with offshore companies.

"Legally you can escape [with this], as the law is unclear for online gambling," says Mumbai- based legal representative HP Ranina.

But regardless of this, it is "offline sports betting", done through phone calls which control the market.

Calls for legalisation

The clamour to legalise sports betting in cricket has grown after a panel designated by India's Supreme Court proposed the concept, saying it would help clamp down on corruption in the nation's preferred sport.

The Justice RM Lodha Commission was established to recommend 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 sports betting scandal emerged.

Two franchises have actually been prohibited for 2 years after some gamers and group authorities were condemned of repairing parts of the match at the request of bookmakers.

The panel also 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 relocation in the right instructions.

"I do not mind paying some cash out my revenues, as long as I can gamble openly," states our cricket gambler.

It would also open a huge business chance for licensed bookies and global online wagering business to set up operations in India.

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

"If you work alongside wagering business, you will have a very efficient approach of marking out match fixing," states George Oborne, who runs a mock sports betting website, India Bet.

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

However, there are constraints.

"Definitely there will be prohibited sports betting since (some) people would not wish to leave an audit trail by entering the white market," says Mr Oborne.

He adds that individuals who utilize unaccounted cash to put huge bets will never gamble legally.

Approval question

For sports betting to be legalised, parliamentary approval will be needed to produce a brand-new law, and politically this will be a difficult concept to offer.

"Although many individuals are associated with some sort of gaming - it's still a controversial problem for lots of," states 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 procedure is so long and challenging that it will take years," states Mr Ranina."That's why, we are negative about this becoming a truth anytime quickly."

Yet with the idea having been backed by a main panel for the very first time, a minimum of an argument has actually fired up around a subject - which previously was thought about a taboo.