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

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

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

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

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

And a few minutes later his prediction comes to life, as India wins the match in a nail-biting surface.

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

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

Besides horse racing, sports betting wagering of any kind is not allowed India. Despite that, illegal sports betting distributes thrive in the nation.

'Black money'

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

Without any legal avenue, 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 greatest specific 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 type of gaming in India, but unlike in the US which has a law prohibiting internet gambling, there is nothing similar here.

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

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

But despite this, it is "offline gaming", done through telephone 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 concept, saying it would help clamp down on corruption in the nation's preferred sport.

The Justice RM Lodha Commission was set up to recommend 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 wagering scandal emerged.

Two franchises have actually been prohibited for two years after some players and team authorities were found guilty of repairing parts of the match at the behest of bookies.

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

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

"I do not mind paying some cash out my revenues, as long as I can bet publicly," states our cricket gambler.

It would likewise open a huge business chance for certified bookmakers and international online sports betting business to establish operations in India.

And it would help limit match repairing in cricket and other sports betting, argue lots of, by helping make deals associated with gambling more transparent.

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

But lots of also think, that the taxes levied on the gambler and the bookie will have to be reasonable to make it appealing enough for them to gamble legally.

However, there are restrictions.

"Definitely there will be illegal wagering because (some) people would not want to leave an audit trail by going into the white market," says Mr Oborne.

He includes that individuals who utilize unaccounted cash to place big bets will never gamble lawfully.

Approval concern

For sports betting to be legalised, parliamentary approval will be required to produce a brand-new law, and politically this will be a difficult idea to sell.

"Despite the fact that lots of people are associated with some sort of gambling - it's still a controversial concern for lots of," states our unnamed punter.

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

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

Yet with the idea having actually been endorsed by a main panel for the very first time, a minimum of an argument has actually ignited around a subject - which up until now was thought about a taboo.