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 requiring 17 runs to win against Australia.

In his two-bedroom home situated in central Mumbai, a middle-aged guy is seeing the game, nervously. He's sitting on the edge of his grey colour couch 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 but to keep modifying his bet.

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

"I believe India is winning, make the modification," he informs his bookmaker on the phone.

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

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

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

Aside from horse racing, sports betting of any kind is not allowed India. Despite that, unlawful sports betting syndicates thrive in the country.

'Black cash'

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

Without any legal opportunity, punters place 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 highest specific run scorer.

Most of these transactions involve so-called "black money", which is money not stated 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 gambling, there is nothing comparable here.

And overseas sports betting companies are using this loophole to lure Indians. Despite the fact that there are no online sports betting operators based out of India, a lot people have actually signed up accounts with overseas companies.

"Legally you can get away [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 marketplace.

Require legalisation

The clamour to legalise wagering in cricket has grown after a panel designated by India's Supreme Court proposed the idea, saying it would assist secure down on corruption in the nation's favourite sport.

The Justice RM Lodha Commission was established to recommend changes 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 emerged.

Two franchises have actually been prohibited for two years after some gamers and team authorities were discovered guilty of fixing parts of the match at the behest of bookmakers.

The panel likewise argues that legalised wagering will generate tax profits for the exchequer that could total up to $2bn a year.

Even bettors feel that legalising sports betting wagering is a move in the ideal instructions.

"I don't mind paying some cash out my revenues, as long as I can bet openly," states our cricket gambler.

It would also open a big organization opportunity for certified bookies and global online wagering companies 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 together with sports betting companies, you will have a really efficient technique of stamping out match repairing," says George Oborne, who runs a mock wagering site, India Bet.

But many also believe, that the taxes imposed on the bettor and the bookie will need to be sensible to make it attractive enough for them to bet lawfully.

However, there are restrictions.

"Definitely there will be illegal sports betting because (some) individuals wouldn't desire to leave an audit trail by getting in the white market," states Mr Oborne.

He includes that individuals who use unaccounted cash to put huge bets will never bet lawfully.

Approval concern

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

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

And provided that India has a federal structural - each state will have to also pass a separate law to legalise sports betting 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 soon."

Yet with the concept having actually been backed by an official panel for the first time, at least a dispute has fired up around a topic - which previously was thought about a taboo.