Howzat? The clamour to legalise sports betting wagering 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 runs to win versus Australia.

In his two-bedroom home situated in main Mumbai, a middle-aged male is watching the video game, nervously. He's resting on the edge of his grey colour couch with his smart phone glued to his ideal hand.

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

Five minutes earlier his cash was on Australia, today as the Indian batsman gets ready to face the last over he's altered his mind.

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

And a few minutes later on his forecast comes true, as India wins the match in a nail-biting finish.

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

Besides horse racing, sports betting of any kind is not allowed India. Despite that, prohibited sports betting distributes flourish in the country.

'Black money'

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 cash is directed towards cricket.

Without any legal avenue, punters position 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 specific run scorer.

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

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

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

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

But regardless of this, it is "offline gambling", done through 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 assist secure down on corruption in the country's preferred sport.

The Justice RM Lodha Commission was established to suggest changes in the performance of India's cricket regulatory body, the Board of Control for Cricket in India (BCCI), after the 2013 Indian Premier League wagering scandal came to light.

Two franchises have actually been prohibited for two years after some players and team officials were condemned of fixing parts of the match at the wish of bookies.

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

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

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

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

And it would help restrict match repairing in cricket and other sports betting, argue numerous, by helping make transactions involved in sports betting more transparent.

"If you work together with wagering companies, you will have a very reliable method of marking out match repairing," says George Oborne, who runs a mock sports betting site, India Bet.

But numerous likewise believe, that the taxes levied on the bettor and the bookie will have to be affordable to make it attractive enough for them to bet lawfully.

However, there are restrictions.

"Definitely there will be prohibited sports betting since (some) people wouldn't wish to leave an audit trail by getting in the white market," says Mr Oborne.

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

Approval concern

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

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

And offered that India has a federal structural - each state will have to likewise pass a separate law to legalise sports betting in their territory.

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

Yet with the idea having been backed by an official panel for the first time, at least a dispute has ignited around a topic - which previously was considered a taboo.