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 against Australia.

In his two-bedroom home situated in main Mumbai, a middle-aged male is watching the game, nervously. He's resting on the edge of his grey colour couch with his cellphone glued to his best hand.

He has made more than 10 contact the last thirty minutes - not to discuss the match however to keep revising his bet.

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

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

And a few minutes later his forecast comes true, as India wins the match in a nail-biting surface.

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

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

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

'Black money'

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

Without any legal opportunity, punters position bets using their phones by making calls to bookies. Gamblers can bank on anything associated to the cricket match, from who is winning to the highest individual run scorer.

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

The 1867 Public Gambling Act bars any type of sports betting in India, but unlike in the US which has a law forbiding internet sports betting, there is absolutely nothing similar here.

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

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

But in spite of this, it is "offline gambling", done through phone calls which dominate the marketplace.

Calls for legalisation

The clamour to legalise wagering in cricket has actually grown after a panel selected by India's Supreme Court proposed the idea, saying it would help secure down on corruption in the nation's favourite 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 prohibited for two years after some players and team authorities were condemned of fixing parts of the match at the wish of bookmakers.

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

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

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

It would likewise open a huge business opportunity for licensed bookies and international online sports betting business to establish operations in India.

And it would help limit match fixing in cricket and other sports betting, argue lots of, by assisting make transactions associated with sports betting more transparent.

"If you work together with wagering business, you will have an extremely efficient method of marking out match repairing," says George Oborne, who runs a mock wagering website, India Bet.

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

However, there are restrictions.

"Definitely there will be illegal sports betting since (some) people would not wish to leave an audit trail by going into the white market," states Mr Oborne.

He adds that individuals who use unaccounted cash to position huge bets will never bet lawfully.

Approval concern

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

"Although lots of people are involved in some sort of gambling - it's still a controversial issue for many," says our unnamed punter.

And offered 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 difficult that it will take years," states Mr Ranina."That's why, we are cynical about this becoming a reality anytime quickly."

Yet with the idea having actually been endorsed by an official panel for the first time, at least a dispute has actually sparked around a subject - which until now was thought about a taboo.