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 needing 17 runs to win versus Australia.

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

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

Five minutes previously his money was on Australia, and now as the Indian batsman gets prepared to deal with the last over he's altered his mind.

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

And a few minutes later on 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 childlike glee.

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

Aside from horse racing, sports betting wagering of any kind is not permitted in India. Despite that, unlawful sports betting distributes grow in the country.

'Black money'

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

With no legal avenue, 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 highest individual run scorer.

Most of these deals include so-called "black money", which is money not declared to the taxman.

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

And offshore sports betting business are using this loophole to entice Indians. Even though there are no online sports betting operators based out of India, a lot people have actually signed up accounts with overseas firms.

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

But regardless of this, it is "offline gaming", done through call which dominate the marketplace.

Require legalisation

The clamour to legalise sports betting in cricket has grown after a panel selected by India's Supreme Court proposed the idea, stating it would help secure down on corruption in the nation's preferred sport.

The Justice RM Lodha Commission was established 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 emerged.

Two franchises have been banned for 2 years after some players and team authorities were discovered guilty of fixing parts of the match at the wish of bookies.

The panel likewise argues that legalised sports betting will bring in tax profits for the exchequer that might total up to $2bn a year.

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

"I don't mind paying some cash out my profits, as long as I can bet openly," says our cricket gambler.

It would likewise open a substantial organization opportunity for licensed bookies and international online wagering business to establish operations in India.

And it would help restrict match repairing in cricket and other sports betting, argue lots of, by helping make deals included in sports betting more transparent.

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

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

However, there are restrictions.

"Definitely there will be illegal sports betting because (some) individuals wouldn't wish to leave an audit trail by getting in the white market," states Mr Oborne.

He adds that people who use unaccounted cash to place huge bets will never gamble lawfully.

Approval question

For sports betting to be legalised, parliamentary approval will be needed to create a brand-new law, and politically this will be a hard concept to sell.

"Although many individuals are involved in some sort of gaming - it's still a questionable problem for numerous," states our unnamed punter.

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

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

Yet with the concept having been endorsed by an official panel for the very first time, a minimum of a dispute has fired up around a subject - which till now was considered a taboo.