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 main Mumbai, a middle-aged male is watching the game, nervously. He's resting on the edge of his grey colour sofa with his cellphone glued to his right-hand man.

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

Five minutes earlier his cash was on Australia, and 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 on his forecast comes real, as India wins the match in a nail-biting surface.

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

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

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

'Black cash'

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 sports betting money is directed towards cricket.

Without any legal avenue, punters place bets using their phones by making calls to bookies. Gamblers can bank on anything related to the cricket match, from who is winning to the greatest individual run scorer.

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

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

And offshore sports betting companies are using this loophole to tempt Indians. Even though there are no online wagering operators based out of India, a lot individuals have registered accounts with overseas companies.

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

But regardless of this, it is "offline sports betting", done through telephone call which dominate the market.

Calls for legalisation

The clamour to legalise sports betting in cricket has actually grown after a panel designated by India's Supreme Court proposed the idea, stating it would help clamp down on corruption in the country'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 sports betting scandal came to light.

Two franchises have actually been prohibited for two years after some players and group authorities were condemned of fixing parts of the match at the wish of bookmakers.

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

Even gamblers feel that legalising sports betting wagering is a move in the best instructions.

"I don't mind paying some money out my revenues, as long as I can bet publicly," says our cricket bettor.

It would likewise open a big business opportunity for certified bookies and global online wagering companies to set up operations in India.

And it would assist limit match fixing in cricket and other sports betting, argue numerous, by helping make transactions associated with gambling more transparent.

"If you work alongside sports betting companies, you will have a very effective technique of stamping out match repairing," states George Oborne, who runs a mock sports betting website, India Bet.

But numerous likewise believe, that the taxes imposed on the bettor and the bookmaker will have to be sensible to make it attractive enough for them to gamble lawfully.

However, there are constraints.

"Definitely there will be unlawful sports betting because (some) individuals wouldn't wish to leave an audit trail by entering the white market," says Mr Oborne.

He adds that people who use unaccounted cash to position huge bets will never bet lawfully.

Approval question

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

"Even though lots of people are associated with some sort of gambling - it's still a controversial problem for lots of," says our unnamed punter.

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

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

Yet with the idea having been endorsed by an official panel for the very first time, a minimum of an argument has fired up around a topic - which previously was thought about a taboo.