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 home situated in main Mumbai, a middle-aged man is viewing the game, nervously. He's resting on the edge of his grey colour couch with his mobile phone glued to his right hand.

He has made more than 10 calls in the last 30 minutes - not to talk about the match but to keep revising his bet.

Five minutes previously his cash was on Australia, but now as the Indian batsman prepares to deal with 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 couple of minutes later his prediction becomes a reality, as India wins the match in a nail-biting finish.

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

For more than three decades he's been sports betting 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 enabled in India. Despite that, prohibited wagering distributes prosper 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 money is directed towards cricket.

With no legal avenue, punters place bets using their phones by making calls to bookies. Gamblers can wager on anything related to the cricket match, from who is winning to the highest specific run scorer.

The majority of these deals include so-called "black cash", which is cash 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 web gaming, there is absolutely nothing comparable here.

And overseas sports betting companies are using this loophole to draw Indians. Although there are no online sports betting operators based out of India, a lot individuals have signed up accounts with overseas firms.

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

But despite this, it is "offline gambling", done through telephone call which dominate the marketplace.

Require legalisation

The clamour to legalise sports betting in cricket has actually grown after a panel appointed by India's Supreme Court proposed the idea, stating it would help clamp down on corruption in the country'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 came to light.

Two franchises have actually been banned for 2 years after some gamers and group authorities were discovered guilty of repairing parts of the match at the behest of bookmakers.

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

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

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

It would likewise open a huge company opportunity for licensed bookmakers and worldwide online wagering companies 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 alongside wagering companies, you will have an extremely reliable approach of marking out match repairing," says George Oborne, who runs a mock wagering website, India Bet.

But many also believe, that the taxes imposed on the gambler and the bookmaker will need to be affordable to make it appealing enough for them to gamble legally.

However, there are restrictions.

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

He adds that people who utilize unaccounted money to position huge bets will never gamble lawfully.

Approval question

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

"Although numerous people are included in some sort of sports betting - it's still a questionable concern for numerous," says our unnamed punter.

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

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

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