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 versus Australia.

In his two-bedroom house located in central Mumbai, a middle-aged man is enjoying the game, nervously. He's sitting on the edge of his grey colour sofa with his mobile phone glued to his ideal hand.

He has made more than 10 contact the last 30 minutes - not to talk about the match but to keep modifying his bet.

Five minutes earlier his money was on Australia, and 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 informs his bookmaker on the phone.

And a few minutes later on his prediction becomes a reality, as India wins the match in a nail-biting finish.

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

For more than 3 decades he's been wagering on cricket matches. We can't expose his name as what he's doing is illegal in India.

Aside from horse racing, sports betting wagering of any kind is not allowed India. Despite that, illegal sports betting syndicates flourish in the nation.

'Black money'

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

With no legal avenue, punters put bets utilizing their phones by making calls to bookies. Gamblers can bet on anything related to the cricket match, from who is winning to the greatest private run scorer.

Most of these deals involve so-called "black cash", 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 similar here.

And overseas sports betting companies are utilizing this loophole to tempt Indians. Although there are no online wagering operators based out of India, a lot individuals have signed up accounts with overseas firms.

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

But in spite of this, it is "offline gaming", done through call which control the market.

Require legalisation

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

The Justice RM Lodha Commission was set up to recommend modifications in the functioning 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 actually been banned for 2 years after some gamers and group officials were found guilty of fixing parts of the match at the request of bookmakers.

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

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

"I do not mind paying some money out my earnings, as long as I can bet openly," says our cricket gambler.

It would likewise open a big company chance for licensed bookmakers and global online wagering business to set up operations in India.

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

"If you work alongside sports betting business, you will have a really efficient technique of stamping out match repairing," says George Oborne, who runs a mock sports betting site, India Bet.

But many also believe, that the taxes imposed on the gambler and the bookmaker will need to be sensible to make it appealing enough for them to gamble legally.

However, there are constraints.

"Definitely there will be prohibited sports betting due to the fact that (some) individuals would not wish to leave an audit trail by going into the white market," says Mr Oborne.

He includes that individuals who utilize unaccounted cash to place big bets will never bet legally.

Approval question

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

"Although many individuals are involved in some sort of sports betting - it's still a controversial problem 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 gambling in their area.

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

Yet with the concept having been backed by a main panel for the very first time, a minimum of a dispute has fired up around a subject - which previously was considered a taboo.