Howzat? The clamour to legalise sports betting 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 requiring 17 go to win versus Australia.

In his two-bedroom house situated in central Mumbai, a middle-aged man is watching the 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 made more than 10 employ the last 30 minutes - not to discuss the match but to keep modifying his bet.

Five minutes previously his cash was on Australia, however now as the Indian batsman prepares yourself to face the last over he's altered his mind.

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

And a couple of minutes later on his prediction comes real, as India wins the match in a nail-biting finish.

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

For more than 3 decades he's been banking on cricket matches. We can't expose his name as what he's doing is prohibited in India.

Besides horse racing, sports betting of any kind is not allowed India. Despite that, unlawful wagering distributes flourish in the country.

'Black money'

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

Without any legal avenue, punters position 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 greatest individual run scorer.

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

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

And offshore sports betting companies are utilizing this loophole to entice Indians. Despite the fact that there are no online sports betting operators based out of India, a lot people have signed up accounts with overseas companies.

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

But despite this, it is "offline sports betting", done through phone calls which control the marketplace.

Calls for 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 nation's favourite sport.

The Justice RM Lodha Commission was set up to recommend modifications 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 been prohibited for two years after some gamers and team authorities were condemned of repairing parts of the match at the behest of bookmakers.

The panel likewise argues that legalised wagering will generate tax earnings for the exchequer that might total up to $2bn a year.

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

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

It would likewise open a substantial organization opportunity for certified bookies and global 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 assisting make transactions included in gambling more transparent.

"If you work alongside sports betting companies, you will have a very efficient approach of marking out match fixing," states George Oborne, who runs a mock sports betting website, India Bet.

But many also think, that the taxes imposed on the gambler and the bookie will need to be reasonable to make it appealing enough for them to gamble lawfully.

However, there are limitations.

"Definitely there will be illegal sports betting because (some) people wouldn't want to leave an audit trail by getting in the white market," says Mr Oborne.

He includes that people who utilize unaccounted money to place big bets will never gamble lawfully.

Approval concern

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

"Even however many individuals are associated with some sort of gaming - it's still a controversial issue for lots of," states our unnamed punter.

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

"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 a dispute has fired up around a topic - which previously was considered a taboo.