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 home located in central Mumbai, a middle-aged man is watching the video game, nervously. He's sitting on the edge of his grey colour sofa with his smart phone glued to his best hand.

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

Five minutes earlier his money was on Australia, today 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 tells his bookie on the phone.

And a couple of minutes later on his forecast comes real, as India wins the match in a nail-biting surface.

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

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

Besides horse racing, sports betting wagering of any kind is not allowed India. Despite that, prohibited sports betting distributes prosper in the nation.

'Black cash'

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

Without any legal opportunity, punters position bets utilizing their phones by making calls to bookies. Gamblers can bank on anything related to the cricket match, from who is winning to the greatest private run scorer.

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

The 1867 Public Gambling Act bars any sort of sports betting in India, but unlike in the US which has a law restricting web gaming, there is nothing comparable here.

And offshore wagering business 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 offshore companies.

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

But in spite of this, it is "offline gaming", done through phone calls which dominate the marketplace.

Require legalisation

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

The Justice RM Lodha Commission was established to suggest changes in the performance 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 actually been banned for two years after some gamers and team authorities were condemned of repairing parts of the match at the behest of bookmakers.

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

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

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

It would also open a substantial company chance for licensed bookies and global online wagering business to establish operations in India.

And it would assist restrict match repairing in cricket and other sports betting, argue many, by assisting make deals included in gambling more transparent.

"If you work together with sports betting companies, you will have a really reliable method of stamping out match fixing," 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 bookmaker will need to be sensible to make it appealing enough for them to bet legally.

However, there are restrictions.

"Definitely there will be unlawful sports betting since (some) people would not wish to leave an audit path by getting in the white market," says Mr Oborne.

He adds that people who use unaccounted cash to place big bets will never gamble lawfully.

Approval concern

For sports betting gambling to be legalised, parliamentary approval will be needed to develop a brand-new law, and politically this will be a hard idea to offer.

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

And given 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," says Mr Ranina."That's why, we are cynical about this becoming a reality anytime soon."

Yet with the concept having actually been endorsed by an official panel for the very first time, a minimum of an argument has ignited around a subject - which until now was thought about a taboo.