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 requiring 17 go to win versus Australia.

In his two-bedroom home located in central Mumbai, a middle-aged male is viewing the game, nervously. He's sitting on the edge of his grey colour couch with his smart phone glued to his right-hand man.

He has made more than 10 employ the last 30 minutes - not to go over the match but to keep modifying his bet.

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

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

And a couple of 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 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.

Besides horse racing, sports betting of any kind is not allowed India. Despite that, prohibited sports betting syndicates grow 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 gambling money is directed towards cricket.

Without any legal opportunity, punters place bets utilizing their phones by making calls to bookmakers. Gamblers can wager on anything related to the cricket match, from who is winning to the highest specific run scorer.

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

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

And offshore sports betting business are using this loophole to lure Indians. Despite the fact that there are no online wagering operators based out of India, a lot people have registered accounts with overseas companies.

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

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

Require legalisation

The clamour to legalise sports betting in cricket has grown after a panel appointed by India's Supreme Court proposed the concept, stating it would assist clamp down on corruption in the country'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 sports betting scandal emerged.

Two franchises have been banned for two years after some gamers and group authorities were condemned of fixing parts of the match at the behest of bookmakers.

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

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

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

It would likewise open a big service opportunity for certified bookies and worldwide online sports betting 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 transactions associated with sports betting more transparent.

"If you work alongside wagering business, you will have a really reliable technique of stamping out match fixing," says George Oborne, who runs a mock wagering website, India Bet.

But lots of also think, that the taxes levied on the bettor and the bookie will need to be sensible to make it appealing enough for them to bet legally.

However, there are constraints.

"Definitely there will be unlawful sports betting since (some) people would not wish to leave an audit trail by going into the white market," says Mr Oborne.

He adds that people who utilize unaccounted cash to position big bets will never gamble legally.

Approval concern

For sports betting gambling to be legalised, parliamentary approval will be required to develop a brand-new law, and politically this will be a difficult idea to sell.

"Even though lots of people are involved in some sort of sports betting - it's still a questionable concern for numerous," 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 in their area.

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

Yet with the idea having been endorsed by a main panel for the very first time, a minimum of an argument has actually ignited around a subject - which up until now was thought about a taboo.