Howzat? The clamour to legalise sports betting wagering 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 home located in central Mumbai, a middle-aged man is seeing the video game, nervously. He's sitting on the edge of his grey colour couch with his cellphone glued to his best hand.

He has made more than 10 contact the last 30 minutes - not to discuss the match however to keep revising his bet.

Five minutes previously his money was on Australia, today as the Indian batsman prepares to face the last over he's altered his mind.

"I think India is winning, make the change," he informs his bookmaker on the phone.

And a couple of minutes later his prediction comes true, as India wins the match in a nail-biting finish.

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

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

Other than horse racing, sports betting wagering of any kind is not allowed India. Despite that, illegal wagering syndicates prosper in the nation.

'Black cash'

According to the Doha-based International Centre for sports betting Security, India's unlawful sports betting market is worth some $150bn a year. And much of that sports betting cash 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 greatest specific run scorer.

Most of these deals include 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 prohibiting web gaming, there is nothing similar here.

And overseas sports betting companies are using this loophole to entice Indians. Even though there are no online wagering operators based out of India, a lot individuals have signed up accounts with overseas firms.

"Legally you can escape [with this], as the law is ambiguous for online gambling," says Mumbai- based legal representative HP Ranina.

But despite this, it is "offline gaming", done through call which dominate the marketplace.

Calls for legalisation

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

The Justice RM Lodha Commission was set up to suggest 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 emerged.

Two franchises have been prohibited for two years after some players and team officials were found guilty of fixing parts of the match at the wish of bookies.

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

Even gamblers feel that legalising sports betting is a move in the ideal direction.

"I do not mind paying some money out my earnings, as long as I can gamble openly," states our cricket gambler.

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

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

"If you work together with wagering business, 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 many likewise believe, that the taxes imposed on the bettor and the bookie will need to be reasonable to make it appealing enough for them to bet legally.

However, there are constraints.

"Definitely there will be unlawful sports betting due to the fact that (some) people would not wish to leave an audit trail by entering the white market," states Mr Oborne.

He adds that people who utilize unaccounted money to place huge bets will never bet lawfully.

Approval concern

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

"Although lots of people are associated with some sort of gambling - it's still a questionable issue for many," 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 gambling in their area.

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

Yet with the concept having actually been backed by an official panel for the very first time, at least a dispute has ignited around a topic - which previously was thought about a taboo.