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 house situated in central Mumbai, a middle-aged male is seeing the video game, nervously. He's sitting on the edge of his grey colour couch with his cellphone 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 revising his bet.

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

"I believe India is winning, make the change," he informs his bookie on the phone.

And a few minutes later on his prediction comes true, 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 sports betting on cricket matches. We can't expose his name as what he's doing is unlawful in India.

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

'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 sports betting cash is directed towards cricket.

With no legal avenue, punters place bets using their phones by making calls to bookmakers. Gamblers can bet on anything related to the cricket match, from who is winning to the highest private run scorer.

Most of these deals involve so-called "black money", which is cash not stated to the taxman.

The 1867 Public Gambling Act bars any sort of gambling in India, however unlike in the US which has a law prohibiting web sports betting, there is nothing similar here.

And offshore wagering companies are using this loophole to lure Indians. Despite the fact that there are no online wagering operators based out of India, a lot individuals have signed up accounts with offshore 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 gambling", done through call which dominate the market.

Require legalisation

The clamour to legalise wagering in cricket has actually 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 favourite sport.

The Justice RM Lodha Commission was established to recommend 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 prohibited for 2 years after some gamers and team authorities were discovered guilty of repairing parts of the match at the behest of bookmakers.

The panel also argues that legalised wagering will generate tax revenues for the exchequer that could amount to $2bn a year.

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

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

It would likewise open a huge service chance for certified bookmakers and worldwide online sports betting companies to establish operations in India.

And it would help limit match fixing in cricket and other sports betting, argue numerous, by helping make deals included in gambling more transparent.

"If you work along with wagering companies, you will have a very effective approach 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 bettor and the bookie will need to be sensible to make it attractive enough for them to bet lawfully.

However, there are limitations.

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

He includes that individuals who utilize unaccounted money to put big bets will never bet 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 tough concept to offer.

"Even however many individuals are associated with some sort of gaming - it's still a questionable problem for many," says our unnamed punter.

And considered 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 tricky that it will take years," says Mr Ranina."That's why, we are cynical about this becoming a reality anytime quickly."

Yet with the idea having actually been backed by a main panel for the very first time, at least a dispute has actually sparked around a subject - which previously was thought about a taboo.