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 runs to win against Australia.

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

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

Five minutes earlier his money was on Australia, however now as the Indian batsman gets prepared to face the last over he's altered his mind.

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

And a couple of minutes later on his forecast comes true, 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 sports betting on cricket matches. We can't expose his name as what he's doing is illegal in India.

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

'Black cash'

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

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

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

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

And overseas sports betting companies are using this loophole to entice Indians. Despite the fact that there are no online sports betting 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 unclear for online gambling," says Mumbai- based legal representative HP Ranina.

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

Require legalisation

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

The Justice RM Lodha Commission was set up to suggest modifications in the performance 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 been banned for two years after some gamers and team authorities were condemned of fixing parts of the match at the request of bookies.

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

Even bettors feel that legalising sports betting wagering is a relocation in the right instructions.

"I do not mind paying some money out my profits, as long as I can bet publicly," says our cricket bettor.

It would likewise open a big service opportunity for licensed bookmakers and global online wagering business to set up operations in India.

And it would help restrict match fixing in cricket and other sports betting, argue lots of, by helping make deals associated with sports betting more transparent.

"If you work alongside wagering companies, you will have an extremely reliable technique of stamping out match repairing," states George Oborne, who runs a mock wagering website, India Bet.

But numerous also think, that the taxes levied on the bettor and the bookie will have to be sensible to make it appealing enough for them to gamble legally.

However, there are limitations.

"Definitely there will be prohibited wagering because (some) individuals would not wish to leave an audit trail by entering the white market," states Mr Oborne.

He includes that individuals who utilize unaccounted cash to position huge bets will never gamble legally.

Approval concern

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

"Although lots of people are associated with some sort of sports betting - it's still a questionable issue for many," states our unnamed punter.

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

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

Yet with the concept having been backed by a main panel for the very first time, at least an argument has fired up around a subject - which previously was considered a taboo.