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 go to win against Australia.

In his two-bedroom home situated in main Mumbai, a middle-aged male is viewing the game, nervously. He's sitting on the edge of his grey colour couch with his mobile phone glued to his right-hand man.

He has actually made more than 10 hire the last thirty minutes - not to talk about the match however to keep modifying his bet.

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

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

And a couple of minutes later on his forecast comes to life, as India wins the match in a nail-biting finish.

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

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

Other than horse racing, sports betting of any kind is not enabled in India. Despite that, unlawful sports betting syndicates thrive in the country.

'Black cash'

According to the Doha-based International Centre for sports betting Security, India's illegal 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 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 specific run scorer.

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

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

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

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

But despite this, it is "offline gaming", done through phone calls 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 secure down on corruption in the country's favourite sport.

The Justice RM Lodha Commission was established to suggest changes in the functioning 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 been prohibited for two years after some players and group authorities were condemned of repairing parts of the match at the behest of bookies.

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

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

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

It would also open a substantial company chance for certified bookmakers and worldwide online sports betting business to set up operations in India.

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

"If you work together with sports betting business, you will have a really effective method of marking out match fixing," says George Oborne, who runs a mock wagering site, India Bet.

But numerous also believe, that the taxes imposed on the bettor and the bookie will have to be sensible to make it appealing enough for them to bet legally.

However, there are limitations.

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

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

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.

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

And considered that India has a federal structural - each state will need to likewise pass a separate law to legalise sports betting gambling 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 ending up being a truth anytime soon."

Yet with the concept having actually been backed by a main panel for the first time, at least a debate has ignited around a topic - which up until now was thought about a taboo.