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 go to win versus Australia.

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

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

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

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

And a few 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 childish glee.

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

Aside from horse racing, sports betting of any kind is not enabled in India. Despite that, unlawful sports betting distributes prosper in the nation.

'Black money'

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

Without any legal avenue, punters position bets using their phones by making calls to bookies. Gamblers can wager on anything associated to the cricket match, from who is winning to the greatest private run scorer.

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

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

And overseas sports betting business are utilizing this loophole to lure Indians. Even though there are no online sports betting operators based out of India, a lot people have registered accounts with overseas companies.

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

But in spite of this, it is "offline sports betting", done through call which control the market.

Require legalisation

The clamour to legalise sports betting in cricket has grown after a panel designated by India's Supreme Court proposed the concept, saying it would assist clamp down on corruption in the country's favourite 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 2 years after some players and group authorities were condemned of fixing parts of the match at the wish of bookies.

The panel also argues that legalised wagering will bring in tax revenues for the exchequer that might amount to $2bn a year.

Even gamblers feel that legalising sports betting is a move in the ideal direction.

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

It would likewise open a huge business opportunity for certified bookies and global online wagering business to establish operations in India.

And it would assist limit match repairing in cricket and other sports betting, argue numerous, by helping make transactions included in sports betting more transparent.

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

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

However, there are restrictions.

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

He adds that people who use unaccounted money to place huge bets will never gamble 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 difficult idea to sell.

"Even though lots of people are involved in some sort of gambling - it's still a questionable concern for lots of," states our unnamed punter.

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

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

Yet with the concept having been endorsed by a main panel for the very first time, at least a dispute has sparked around a topic - which previously was thought about a taboo.