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 situated in central Mumbai, a middle-aged male is enjoying 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 thirty minutes - not to discuss the match but to keep revising his bet.

Five minutes previously his cash was on Australia, today 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 forecast becomes a reality, as India wins the match in a nail-biting finish.

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

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

Other than horse racing, sports betting of any kind is not allowed India. Despite that, prohibited sports betting syndicates prosper in the country.

'Black money'

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

With no legal avenue, punters place bets using their phones by making calls to bookmakers. Gamblers can bank on anything related to the cricket match, from who is winning to the greatest private run scorer.

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

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

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

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

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

Require legalisation

The clamour to legalise wagering in cricket has actually grown after a panel appointed by India's Supreme Court proposed the concept, stating it would help clamp down on corruption in the nation's preferred 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 2 years after some gamers and group officials were condemned of repairing parts of the match at the behest of bookmakers.

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

Even bettors feel that legalising sports betting is a relocation in the best instructions.

"I do not mind paying some cash out my revenues, as long as I can gamble openly," states our cricket gambler.

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

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

"If you work together with wagering companies, you will have an extremely reliable technique of stamping out match fixing," states George Oborne, who runs a mock wagering site, India Bet.

But lots of also believe, that the taxes levied on the gambler and the bookmaker will need to be reasonable to make it appealing enough for them to bet lawfully.

However, there are constraints.

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

He adds that people who use unaccounted cash to place big bets will never bet legally.

Approval question

For sports betting gambling to be legalised, parliamentary approval will be needed to develop a brand-new law, and politically this will be a hard idea to offer.

"Despite the fact that lots of people are involved in some sort of gaming - it's still a questionable issue for many," says our unnamed punter.

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

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

Yet with the concept having actually been endorsed by an official panel for the first time, at least an argument has actually sparked around a topic - which previously was thought about a taboo.