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 requiring 17 go to win versus Australia.

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

He has actually made more than 10 hire the last 30 minutes - not to talk about the match however to keep modifying his bet.

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

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

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

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

For more than 3 decades he's been wagering on cricket matches. We can't reveal his name as what he's doing is unlawful in India.

Aside from horse racing, sports betting wagering of any kind is not allowed India. Despite that, unlawful wagering syndicates prosper in the nation.

'Black money'

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

With no legal opportunity, punters put bets using their phones by making calls to bookies. Gamblers can bet on anything associated to the cricket match, from who is winning to the highest individual run scorer.

Most of these deals involve so-called "black cash", which is money 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 gambling, there is absolutely nothing comparable here.

And overseas wagering companies are utilizing this loophole to lure Indians. Despite the fact that there are no online sports betting operators based out of India, a lot people have actually registered accounts with offshore companies.

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

But despite this, it is "offline gaming", done through call which dominate the market.

Calls for legalisation

The clamour to legalise wagering in cricket has actually grown after a panel appointed by India's Supreme Court proposed the idea, saying it would help clamp down on corruption in the country's favourite sport.

The Justice RM Lodha Commission was set up to suggest changes in the functioning of India's cricket regulatory 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 banned for two years after some players and group officials were condemned of repairing parts of the match at the behest of bookmakers.

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

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

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

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

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

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

But many also think, that the taxes levied on the gambler and the bookie will have to be sensible to make it appealing enough for them to bet lawfully.

However, there are restrictions.

"Definitely there will be illegal sports betting due to the fact that (some) people wouldn't desire to leave an audit path by going into the white market," states Mr Oborne.

He includes that individuals who use unaccounted money to put huge bets will never ever gamble legally.

Approval concern

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

"Although numerous individuals are associated with some sort of gaming - it's still a controversial problem for lots of," says our unnamed punter.

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

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

Yet with the concept having been endorsed by a main panel for the very first time, a minimum of a dispute has sparked around a topic - which previously was thought about a taboo.