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 needing 17 runs to win versus Australia.

In his two-bedroom house located in central Mumbai, a middle-aged male is enjoying the video game, nervously. He's resting on the edge of his grey colour couch with his smart phone glued to his right hand.

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

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

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

And a couple of minutes later his prediction comes real, 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 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.

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

'Black cash'

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 opportunity, punters position bets using their phones by making calls to bookmakers. Gamblers can wager on anything related to the cricket match, from who is winning to the greatest private run scorer.

The majority of these deals involve so-called "black cash", which is cash not stated to the taxman.

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

And overseas sports betting companies are using this loophole to lure Indians. Despite the fact that there are no online sports betting operators based out of India, a lot individuals have signed up accounts with offshore companies.

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

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

Calls for legalisation

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

The Justice RM Lodha Commission was established to suggest modifications in the performance 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 actually been banned for two years after some players and team officials were found guilty of repairing parts of the match at the request of bookies.

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

Even gamblers feel that legalising sports betting wagering is a relocation in the right instructions.

"I do not mind paying some money out my earnings, as long as I can gamble publicly," says our cricket bettor.

It would also open a huge company opportunity for certified bookies and global online sports betting business to set up operations in India.

And it would help restrict match fixing in cricket and other sports betting, argue many, by helping make transactions involved in gambling more transparent.

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

But numerous likewise think, that the taxes levied on the bettor and the bookie will need to be sensible to make it appealing enough for them to bet legally.

However, there are limitations.

"Definitely there will be illegal wagering because (some) individuals would not want to leave an audit trail by going into the white market," says Mr Oborne.

He adds that people who utilize unaccounted cash to place huge bets will never ever bet legally.

Approval question

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

"Although lots of individuals are involved in some sort of sports betting - it's still a questionable issue for many," states our unnamed punter.

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

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

Yet with the idea having actually been backed by a main panel for the very first time, at least a dispute has actually sparked around a topic - which until now was considered a taboo.