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 requiring 17 go to win versus Australia.

In his two-bedroom house situated in main Mumbai, a middle-aged male is enjoying the video game, nervously. He's resting on the edge of his grey colour sofa with his cellphone glued to his right hand.

He has made more than 10 hire the last 30 minutes - not to discuss the match but to keep modifying his bet.

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

"I believe India is winning, make the modification," he informs his bookmaker on the phone.

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

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

For more than 3 decades he's been banking 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 enabled in India. Despite that, illegal wagering distributes grow in the nation.

'Black money'

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

With no legal opportunity, punters position bets utilizing their phones by making calls to bookmakers. Gamblers can wager on anything related to the cricket match, from who is winning to the highest individual run scorer.

The majority of these transactions include so-called "black money", which is cash not declared to the taxman.

The 1867 Public Gambling Act bars any type of gambling in India, however unlike in the US which has a law restricting web gaming, there is nothing similar here.

And overseas wagering business are using this loophole to entice Indians. Even though there are no online wagering operators based out of India, a lot people have actually signed up accounts with overseas companies.

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

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

Require legalisation

The clamour to legalise sports betting in cricket has grown after a panel appointed by India's Supreme Court proposed the concept, stating it would assist clamp down on corruption in the country's preferred sport.

The Justice RM Lodha Commission was set up to suggest 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 actually been prohibited for two years after some players and team officials were discovered guilty of fixing parts of the match at the request of bookies.

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

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

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

It would likewise open a substantial business chance for licensed bookies and international online sports betting business to establish operations in India.

And it would help restrict match fixing in cricket and other sports betting, argue many, by helping make deals involved in sports betting more transparent.

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

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

However, there are restrictions.

"Definitely there will be unlawful sports betting due to the fact that (some) people would not wish to leave an audit trail by going into the white market," says Mr Oborne.

He includes that people who use unaccounted cash to position big bets will never gamble legally.

Approval question

For sports betting to be legalised, parliamentary approval will be needed to create a new law, and politically this will be a difficult idea to offer.

"Despite the fact that lots of people are associated with some sort of gaming - it's still a questionable problem for numerous," states our unnamed punter.

And considered 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 cynical about this becoming a reality anytime soon."

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