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 requiring 17 runs to win versus Australia.

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

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

Five minutes previously his cash was on Australia, however now as the Indian batsman prepares yourself 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 his forecast becomes a reality, as India wins the match in a nail-biting finish.

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

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

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

'Black cash'

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

Without any legal avenue, punters position bets utilizing their phones by making calls to bookmakers. Gamblers can bank on anything associated to the cricket match, from who is winning to the highest private run scorer.

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

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

And offshore wagering companies are using this loophole to lure Indians. Even though there are no online wagering operators based out of India, a lot individuals have actually registered accounts with overseas firms.

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

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

Calls for legalisation

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

The Justice RM Lodha Commission was set up to suggest changes in the functioning of India's cricket regulatory 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 prohibited for two years after some players and team authorities were discovered guilty of fixing parts of the match at the behest of bookmakers.

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

Even gamblers feel that legalising sports betting wagering is a move in the best instructions.

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

It would also open a substantial service chance for certified bookmakers and international online wagering business to set up operations in India.

And it would help restrict match repairing in cricket and other sports betting, argue many, by helping make transactions included in sports betting more transparent.

"If you work along with sports betting companies, you will have an extremely effective technique of stamping out match fixing," says 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 need to be reasonable to make it attractive enough for them to gamble legally.

However, there are restrictions.

"Definitely there will be illegal wagering because (some) people wouldn't want to leave an audit trail by going into the white market," states Mr Oborne.

He adds that individuals who use unaccounted money to put huge bets will never bet legally.

Approval concern

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

"Although lots of people are included in some sort of gaming - it's still a controversial concern for lots of," states our unnamed punter.

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

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

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