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 go to win against Australia.

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

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

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

"I think India is winning, make the change," he tells his bookie on the phone.

And a couple of minutes later 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 childlike 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 unlawful in India.

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

'Black cash'

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

Without any legal avenue, punters position bets utilizing their phones by making calls to bookmakers. Gamblers can bet on anything related to the cricket match, from who is winning to the highest private run scorer.

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

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

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

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

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

Require legalisation

The clamour to legalise wagering in cricket has grown after a panel selected by India's Supreme Court proposed the concept, stating it would assist clamp down on corruption in the nation's favourite sport.

The Justice RM Lodha Commission was established to recommend modifications 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 emerged.

Two franchises have actually been banned for two years after some players and team officials were discovered guilty of repairing parts of the match at the wish of bookmakers.

The panel also argues that legalised wagering 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 don't mind paying some cash out my profits, as long as I can gamble publicly," says our cricket gambler.

It would likewise open a big business opportunity for licensed bookies and international online sports betting 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 sports betting more transparent.

"If you work alongside wagering business, you will have a very reliable technique of stamping out match repairing," says George Oborne, who runs a mock sports betting site, India Bet.

But many also believe, that the taxes levied on the bettor and the bookie will need to be affordable to make it attractive enough for them to bet legally.

However, there are limitations.

"Definitely there will be unlawful wagering because (some) individuals would not wish to leave an audit path by entering the white market," says Mr Oborne.

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

Approval concern

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

"Even though many individuals are involved in some sort of sports betting - it's still a controversial concern for numerous," says our unnamed punter.

And given that India has a federal structural - each state will need to also pass a different 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 coming true anytime quickly."

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