Howzat? The clamour to legalise sports betting wagering in India

Published

5 February 2016

Share

close panel

Share page

Copy link

About sharing

By Sameer Hashmi

Mumbai Business press reporter

It is the last over of the cricket match, with India requiring 17 runs to win versus Australia.

In his two-bedroom home located in main Mumbai, a middle-aged guy is viewing the game, nervously. He's resting on the edge of his grey colour sofa with his smart phone glued to his right hand.

He has actually made more than 10 contact the last 30 minutes - not to talk about the match but to keep modifying his bet.

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

"I think India is winning, make the modification," he tells his bookmaker on the phone.

And a few minutes later on his forecast 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 years he's been banking 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, prohibited wagering syndicates flourish in the nation.

'Black money'

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 gambling cash is directed towards cricket.

With no legal opportunity, punters place bets utilizing their phones by making calls to bookies. Gamblers can wager on anything related to the cricket match, from who is winning to the greatest private run scorer.

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

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

And overseas sports betting business are utilizing this loophole to lure Indians. Although there are no online sports betting operators based out of India, a lot people have actually signed up accounts with offshore companies.

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

But in spite of this, it is "offline gambling", done through telephone call which control the market.

Calls for legalisation

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

The Justice RM Lodha Commission was established 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 wagering scandal emerged.

Two franchises have been prohibited for two years after some players and group officials were found guilty of repairing parts of the match at the behest of bookies.

The panel also argues that legalised wagering will bring in tax earnings for the exchequer that might amount to $2bn a year.

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

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

It would also open a big business opportunity for certified bookies and international online sports betting companies to set up operations in India.

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

"If you work along with wagering business, you will have a really efficient technique of marking out match fixing," states George Oborne, who runs a mock wagering website, India Bet.

But numerous also believe, that the taxes imposed on the bettor and the bookie will have to be affordable to make it attractive enough for them to gamble legally.

However, there are restrictions.

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

He adds that individuals who utilize unaccounted cash to put huge bets will never gamble legally.

Approval question

For sports betting to be legalised, parliamentary approval will be required to create a new law, and politically this will be a tough idea to sell.

"Even though lots of people are associated with some sort of sports betting - it's still a questionable concern for numerous," says our unnamed punter.

And offered that India has a federal structural - each state will need to also pass a different law to legalise sports betting gambling 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 becoming a reality anytime soon."

Yet with the idea having actually been backed by an official panel for the very first time, a minimum of an argument has sparked around a subject - which up until now was considered a taboo.