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 go to win versus Australia.

In his two-bedroom house located in main Mumbai, a middle-aged guy is seeing the 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 made more than 10 contact the last thirty minutes - not to talk about the match but to keep revising his bet.

Five minutes previously his cash was on Australia, but now as the Indian batsman prepares yourself to face the last over he's altered his mind.

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

And a few minutes later his prediction comes to life, 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 decades he's been wagering on cricket matches. We can't reveal his name as what he's doing is unlawful in India.

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

'Black cash'

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

With no legal opportunity, punters position 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 specific run scorer.

The majority of these deals involve so-called "black money", 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 prohibiting internet gaming, there is nothing similar here.

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

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

But despite this, it is "offline gambling", done through phone calls which dominate the marketplace.

Require legalisation

The clamour to legalise wagering in cricket has grown after a panel designated by India's Supreme Court proposed the idea, 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 sports betting scandal came to light.

Two franchises have been banned for two years after some players and team authorities were condemned of repairing parts of the match at the behest of bookmakers.

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

Even bettors feel that legalising sports betting wagering is a move in the ideal instructions.

"I do not mind paying some cash out my revenues, as long as I can bet publicly," states our cricket gambler.

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

And it would help 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 sports betting companies, you will have a very efficient approach of stamping out match fixing," says George Oborne, who runs a mock sports betting site, India Bet.

But lots of also think, that the taxes imposed on the gambler and the bookie will need to be reasonable to make it attractive enough for them to gamble legally.

However, there are restrictions.

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

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

Approval concern

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

"Even though numerous individuals are included in some sort of gambling - it's still a controversial problem for many," states our unnamed punter.

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

"The procedure is so long and challenging that it will take years," states Mr Ranina."That's why, we are negative about this ending up being a reality anytime quickly."

Yet with the concept having actually been endorsed by a main panel for the very first time, a minimum of a dispute has ignited around a topic - which previously was thought about a taboo.