Howzat? The clamour to legalise sports betting wagering 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 go to win against Australia.

In his two-bedroom home situated in main Mumbai, a middle-aged male is enjoying the game, nervously. He's sitting on the edge of his grey colour sofa with his mobile phone glued to his best hand.

He has made more than 10 calls in the last thirty minutes - not to go over the match however to keep modifying his bet.

Five minutes previously his cash was on Australia, today as the Indian batsman prepares to face the last over he's altered his mind.

"I think India is winning, make the change," he tells his bookmaker on the phone.

And a couple of minutes later his prediction comes true, 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 expose his name as what he's doing is prohibited in India.

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

'Black money'

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 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 highest individual run scorer.

Most 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, however unlike in the US which has a law restricting web gaming, there is absolutely nothing comparable here.

And offshore wagering business are utilizing this loophole to draw Indians. Even though there are no online sports betting operators based out of India, a lot individuals have signed up accounts with offshore firms.

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

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

Require legalisation

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

The Justice RM Lodha Commission was established to suggest 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 wagering scandal came to light.

Two franchises have been banned for two years after some players and team authorities were discovered guilty of fixing parts of the match at the behest of bookies.

The panel also argues that legalised wagering will bring in tax earnings for the exchequer that could total up to $2bn a year.

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

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

It would likewise open a substantial company opportunity for certified bookmakers and global online sports betting companies to establish operations in India.

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

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

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

However, there are restrictions.

"Definitely there will be unlawful wagering since (some) individuals would not wish to leave an audit trail by going into the white market," states Mr Oborne.

He includes that individuals who use unaccounted money to put huge bets will never gamble lawfully.

Approval question

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

"Despite the fact that lots of people are included in some sort of gambling - it's still a questionable problem for numerous," states our unnamed punter.

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

"The procedure is so long and tricky that it will take years," states Mr Ranina."That's why, we are cynical about this becoming a truth anytime quickly."

Yet with the idea having actually been backed by an official panel for the very first time, at least a debate has fired up around a topic - which till now was thought about a taboo.