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 needing 17 go to win versus Australia.

In his two-bedroom home situated in main Mumbai, a middle-aged man is watching the game, nervously. He's resting on the edge of his grey colour couch with his cellphone glued to his right hand.

He has made more than 10 hire the last 30 minutes - not to talk about the match however to keep revising his bet.

Five minutes earlier his cash was on Australia, today as the Indian batsman prepares to face the last over he's altered his mind.

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

And a few minutes later his prediction comes to life, as India wins the match in a nail-biting finish.

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

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

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

'Black money'

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.

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

The majority of these deals involve so-called "black cash", which is cash not stated to the taxman.

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

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

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

But despite this, it is "offline gaming", done through phone calls which dominate the marketplace.

Calls for legalisation

The clamour to legalise sports betting in cricket has grown after a panel selected 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 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 sports betting scandal emerged.

Two franchises have been prohibited for two years after some players and team authorities were found guilty of fixing parts of the match at the behest of bookies.

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

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

"I don't mind paying some cash out my earnings, as long as I can bet publicly," says our cricket gambler.

It would likewise open a big organization opportunity for licensed bookies and worldwide online sports betting companies to establish operations in India.

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

"If you work along with sports betting business, you will have a really effective approach of stamping out match fixing," states George Oborne, who runs a mock wagering website, India Bet.

But numerous likewise think, that the taxes levied on the bettor and the bookie will have to be sensible to make it appealing enough for them to gamble lawfully.

However, there are restrictions.

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

He adds that individuals who use unaccounted money to position big bets will never ever bet lawfully.

Approval question

For sports betting to be legalised, parliamentary approval will be needed to develop a new law, and politically this will be a tough concept to offer.

"Although many people are included in some sort of gambling - it's still a controversial issue for many," 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 territory.

"The procedure 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 endorsed by an official panel for the very first time, a minimum of a dispute has fired up around a topic - which previously was considered a taboo.