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 runs to win against Australia.

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

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

Five minutes previously his money was on Australia, and now as the Indian batsman gets ready to face the last over he's changed his mind.

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

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

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

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

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

'Black money'

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

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

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

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

And offshore wagering companies are using this loophole to entice Indians. Despite the fact that 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 escape [with this], as the law is ambiguous for online gaming," says Mumbai- based legal representative HP Ranina.

But in spite of this, it is "offline sports betting", done through phone calls which control the marketplace.

Require 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 secure down on corruption in the nation's preferred sport.

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

Two franchises have been prohibited for two years after some players and group officials were condemned of repairing parts of the match at the wish of bookmakers.

The panel also argues that legalised wagering will generate tax incomes for the exchequer that could amount to $2bn a year.

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

"I don't mind paying some money out my profits, as long as I can gamble publicly," states our cricket gambler.

It would also open a huge organization chance for licensed bookmakers and global online wagering business to establish operations in India.

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

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

But lots of likewise believe, that the taxes imposed on the gambler and the bookmaker will need to be reasonable to make it appealing enough for them to bet lawfully.

However, there are constraints.

"Definitely there will be prohibited wagering because (some) individuals wouldn't wish to leave an audit path by getting in the white market," says Mr Oborne.

He includes that individuals who use unaccounted money to place big bets will never ever gamble lawfully.

Approval concern

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

"Although lots of people are included in some sort of sports betting - it's still a controversial problem for numerous," states our unnamed punter.

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

"The procedure is so long and tricky that it will take years," states Mr Ranina."That's why, we are cynical about this coming true anytime quickly."

Yet with the idea having been backed by an official panel for the very first time, at least an argument has actually sparked around a subject - which previously was considered a taboo.