Howzat? The clamour to legalise sports betting wagering in India

Published

5 February 2016

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By Sameer Hashmi

Mumbai Business press 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 guy is viewing the video game, nervously. He's resting on the edge of his grey colour sofa with his smart phone glued to his right-hand man.

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

Five minutes earlier his money was on Australia, however now as the Indian batsman prepares yourself to deal with the last over he's altered his mind.

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

And a few minutes later his prediction becomes a reality, as India wins the match in a nail-biting surface.

"I have made $200 today," he states with a childlike 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 prohibited in India.

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

'Black cash'

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

With no legal opportunity, punters put 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 greatest individual run scorer.

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

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

And offshore betting companies are using this loophole to lure Indians. Although there are no online wagering operators based out of India, a lot individuals have signed up accounts with offshore firms.

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

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

Require legalisation

The clamour to legalise wagering in cricket has grown after a panel appointed by India's Supreme Court proposed the concept, 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 performance of India's cricket regulative body, the Board of Control for Cricket in India (BCCI), after the 2013 Indian Premier League wagering scandal emerged.

Two franchises have actually been banned for 2 years after some gamers and team authorities were condemned of repairing parts of the match at the request of bookmakers.

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

Even bettors feel that legalising sports betting is a relocation in the best direction.

"I don't mind paying some money out my revenues, as long as I can gamble publicly," says our cricket gambler.

It would also open a huge organization chance for certified bookies and worldwide online sports betting companies to set up operations in India.

And it would help limit match repairing in cricket and other sports betting, argue numerous, by helping make transactions involved in gambling more transparent.

"If you work alongside wagering business, you will have a very effective method of stamping out match repairing," says George Oborne, who runs a mock sports betting site, India Bet.

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

However, there are constraints.

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

He includes that people who use unaccounted cash to place big bets will never ever bet 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 difficult concept to offer.

"Even though lots of people are included in some sort of gaming - it's still a questionable concern for numerous," says our unnamed punter.

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

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

Yet with the idea having actually been backed by a main panel for the very first time, at least an argument has actually sparked around a subject - which until now was thought about a taboo.