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 needing 17 runs to win versus Australia.

In his two-bedroom house located in central Mumbai, a middle-aged man is seeing the video game, nervously. He's resting 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 hire the last 30 minutes - not to discuss the match however to keep modifying his bet.

Five minutes earlier his money was on Australia, today as the Indian batsman prepares yourself to face 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 actually made $200 today," he says with a childlike glee.

For more than 3 years he's been banking on cricket matches. We can't reveal his name as what he's doing is prohibited in India.

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

'Black cash'

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

Without any legal opportunity, punters position bets using their phones by making calls to bookies. Gamblers can bet on anything associated to the cricket match, from who is winning to the highest private run scorer.

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

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

And offshore wagering companies are utilizing this loophole to draw Indians. Despite the fact that there are no online sports betting operators based out of India, a lot people have actually registered accounts with overseas firms.

"Legally you can get away [with this], as the law is uncertain for online gaming," states Mumbai- based attorney HP Ranina.

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

Require legalisation

The clamour to legalise wagering in cricket has grown after a panel appointed 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 changes in the functioning of India's cricket regulative body, the Board of Control for Cricket in India (BCCI), after the 2013 Indian Premier League wagering scandal emerged.

Two franchises have been banned for 2 years after some gamers and group officials were condemned of repairing parts of the match at the behest of bookies.

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

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

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

It would also open a substantial service opportunity for certified bookies and worldwide online sports betting companies to set up operations in India.

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

"If you work together with wagering business, you will have a very reliable method of stamping out match repairing," states George Oborne, who runs a mock wagering site, India Bet.

But many likewise believe, that the taxes imposed on the gambler and the bookmaker will have to be affordable to make it attractive enough for them to gamble lawfully.

However, there are limitations.

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

He adds that individuals who use unaccounted cash to put big bets will never gamble legally.

Approval question

For sports betting gambling to be legalised, parliamentary approval will be needed to develop a brand-new law, and politically this will be a tough concept to sell.

"Although many individuals are associated with some sort of gambling - it's still a controversial issue for numerous," states our unnamed punter.

And offered that India has a federal structural - each state will need to also pass a different law to legalise sports betting gambling in their territory.

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

Yet with the concept having actually been backed by an official panel for the very first time, at least an argument has actually fired up around a subject - which previously was considered a taboo.