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 requiring 17 runs to win against Australia.

In his two-bedroom house located in central Mumbai, a middle-aged male is watching 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 hire the last 30 minutes - not to talk about the match however to keep modifying his bet.

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

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

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

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

For more than three years he's been sports betting on cricket matches. We can't reveal his name as what he's doing is unlawful in India.

Aside from horse racing, sports betting of any kind is not permitted in India. Despite that, illegal sports betting distributes thrive in the nation.

'Black cash'

According to the Doha-based International Centre for sports betting Security, India's prohibited sports betting market deserves some $150bn a year. And much of that sports betting 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 highest private run scorer.

Most 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 internet sports betting, there is absolutely nothing similar here.

And offshore wagering business are using this loophole to draw Indians. Although there are no online sports betting operators based out of India, a lot individuals have registered accounts with overseas firms.

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

But in spite of this, it is "offline gambling", 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, saying it would assist clamp down on corruption in the nation's favourite sport.

The Justice RM Lodha Commission was established 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 wagering scandal came to light.

Two franchises have been prohibited for two years after some gamers and group authorities were condemned of repairing parts of the match at the request of bookmakers.

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

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

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

It would also open a huge service opportunity for licensed bookmakers and international online sports betting companies to establish operations in India.

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

"If you work together with sports betting companies, you will have a very effective technique of stamping out match fixing," says George Oborne, who runs a mock wagering site, India Bet.

But numerous also think, that the taxes imposed on the bettor and the bookie will have to be reasonable to make it attractive enough for them to bet lawfully.

However, there are limitations.

"Definitely there will be unlawful wagering due to the fact that (some) people wouldn't want to leave an audit trail by getting in the white market," states Mr Oborne.

He includes that individuals who utilize unaccounted money to position huge bets will never bet lawfully.

Approval question

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

"Even though lots of people are associated with some sort of gaming - it's still a controversial concern for many," says our unnamed punter.

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

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

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