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

In his two-bedroom house situated in central Mumbai, a middle-aged guy is seeing the video game, nervously. He's sitting on the edge of his grey colour sofa with his cellphone glued to his right hand.

He has actually made more than 10 calls in the last thirty minutes - not to discuss the match but to keep revising his bet.

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

"I believe India is winning, make the change," 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 finish.

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

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

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

'Black cash'

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

Without any legal opportunity, punters place bets using their phones by making calls to bookmakers. Gamblers can bank on anything related to the cricket match, from who is winning to the highest private run scorer.

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

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

And offshore wagering companies are using this loophole to draw Indians. Even though there are no online wagering 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 lawyer HP Ranina.

But in spite of this, it is "offline sports betting", done through call which control the marketplace.

Require legalisation

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

The Justice RM Lodha Commission was established to suggest 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 actually been banned for two years after some players and team officials were condemned of fixing parts of the match at the request of bookies.

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

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

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

It would likewise open a huge business chance for licensed bookies and global online sports betting companies to set up operations in India.

And it would assist restrict match repairing in cricket and other sports betting, argue numerous, by assisting make deals associated with sports betting more transparent.

"If you work alongside wagering companies, you will have a really effective approach of stamping out match fixing," states George Oborne, who runs a mock wagering website, India Bet.

But many also think, that the taxes levied on the bettor and the bookmaker will have to be reasonable to make it appealing enough for them to gamble lawfully.

However, there are restrictions.

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

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

Approval concern

For sports betting gambling to be legalised, parliamentary approval will be needed to develop a new law, and politically this will be a difficult concept to offer.

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

And considered that India has a federal structural - each state will have to likewise pass a separate law to legalise sports betting in their area.

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

Yet with the idea having been endorsed by an official panel for the very first time, at least a debate has actually ignited around a topic - which previously was considered a taboo.