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 runs to win versus Australia.

In his two-bedroom home located in main Mumbai, a middle-aged man is watching the video game, nervously. He's sitting on the edge of his grey colour sofa with his smart phone glued to his best hand.

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

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

"I think India is winning, make the change," he informs his bookie on the phone.

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

"I have made $200 today," he says with a childish 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, prohibited wagering syndicates thrive in the country.

'Black cash'

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

Without any legal avenue, punters put bets using 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 transactions 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 restricting web sports betting, there is absolutely nothing comparable here.

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

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

But despite this, it is "offline gambling", done through telephone call which dominate the marketplace.

Calls for legalisation

The clamour to legalise sports betting in cricket has actually grown after a panel selected by India's Supreme Court proposed the concept, stating it would help clamp 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 emerged.

Two franchises have been prohibited for two years after some gamers and team authorities were found guilty of repairing parts of the match at the wish 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 relocation in the ideal instructions.

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

It would also open a big service chance for certified bookies and international online wagering business to set up operations in India.

And it would assist restrict match repairing in cricket and other sports betting, argue many, by helping make deals associated with sports betting more transparent.

"If you work alongside sports betting companies, you will have an extremely effective approach of stamping out match fixing," states George Oborne, who runs a mock sports betting site, India Bet.

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

However, there are constraints.

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

He includes that individuals who use unaccounted cash to position huge bets will never ever bet legally.

Approval concern

For sports betting gambling to be legalised, parliamentary approval will be required to produce a brand-new law, and politically this will be a tough concept to offer.

"Despite the fact that many individuals are associated with some sort of gambling - it's still a questionable issue for many," 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 territory.

"The process is so long and difficult that it will take years," says Mr Ranina."That's why, we are cynical about this becoming a truth anytime quickly."

Yet with the idea having been backed by an official panel for the very first time, a minimum of an argument has actually ignited around a topic - which previously was considered a taboo.