Howzat? The clamour to legalise sports betting in India

Published

5 February 2016

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By Sameer Hashmi

Mumbai Business reporter

It is the last over of the cricket match, with India needing 17 runs to win versus Australia.

In his two-bedroom house located in central Mumbai, a middle-aged male is watching the game, nervously. He's resting on the edge of his grey colour sofa with his mobile phone glued to his right-hand man.

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

Five minutes previously his money was on Australia, now as the Indian batsman prepares to face the last over he's changed his mind.

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

And a couple of minutes later his forecast comes true, 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 3 years he's been banking on cricket matches. We can't expose his name as what he's doing is illegal in India.

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

'Black cash'

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 sports betting money is directed towards cricket.

Without any legal opportunity, punters position bets using their phones by making calls to bookies. Gamblers can bank on anything associated to the cricket match, from who is winning to the highest private run scorer.

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

The 1867 Public Gambling Act bars any sort of gambling in India, but unlike in the US which has a law forbiding internet sports betting, there is nothing comparable here.

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

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

But in spite of this, it is "offline gaming", done through call which dominate 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 help secure down on corruption in the nation's preferred 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 wagering scandal emerged.

Two franchises have been prohibited for 2 years after some players and team officials were discovered guilty of repairing parts of the match at the wish of bookmakers.

The panel likewise argues that legalised wagering will generate tax profits for the exchequer that could amount to $2bn a year.

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

"I don't mind paying some cash out my profits, as long as I can gamble publicly," states our cricket bettor.

It would also open a substantial business chance for licensed bookies and global online wagering companies to set up operations in India.

And it would help limit match repairing in cricket and other sports betting, argue lots of, by helping make transactions associated with sports betting more transparent.

"If you work along with wagering business, you will have a very effective method of stamping out match repairing," 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 bookie will have to be sensible to make it appealing enough for them to bet legally.

However, there are constraints.

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

He includes that people who utilize unaccounted money to place huge bets will never ever bet legally.

Approval concern

For sports betting to be legalised, parliamentary approval will be needed to produce a brand-new law, and politically this will be a difficult concept to sell.

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

And provided that India has a federal structural - each state will have to likewise pass a different law to legalise sports betting gambling 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 becoming a truth anytime soon."

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