Howzat? The clamour to legalise sports betting 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 against Australia.

In his two-bedroom house located in main Mumbai, a middle-aged man is viewing the video game, nervously. He's sitting on the edge of his grey colour sofa with his cellphone glued to his ideal hand.

He has actually made more than 10 calls in the last thirty minutes - not to discuss the match but to keep modifying his bet.

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

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

And a few minutes later his forecast comes to life, as India wins the match in a nail-biting surface.
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"I have made $200 today," he says 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 illegal in India.

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

'Black cash'

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 money is directed towards cricket.

Without any legal avenue, punters put bets using their phones by making calls to bookmakers. Gamblers can bank on anything associated to the cricket match, from who is winning to the highest specific run scorer.

Most of these deals include so-called "black cash", which is cash not stated to the taxman.

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

And overseas sports betting business are using this loophole to draw Indians. Even though there are no online wagering 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 gambling," says Mumbai- based legal representative HP Ranina.

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

Require legalisation

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

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

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

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

Even that legalising sports betting wagering is a move in the best instructions.
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"I do not mind paying some money out my profits, as long as I can gamble publicly," says our cricket gambler.

It would also open a big business chance for licensed bookies and worldwide online wagering companies to establish operations in India.

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

"If you work alongside sports betting companies, you will have a really reliable method of marking out match fixing," states George Oborne, who runs a mock sports betting website, India Bet.

But numerous also think, that the taxes imposed on the gambler and the bookie will have to be affordable to make it attractive enough for them to bet lawfully.

However, there are constraints.

"Definitely there will be prohibited sports betting since (some) individuals wouldn't wish to leave an audit trail by entering the white market," says Mr Oborne.

He includes that people who utilize unaccounted cash to place big bets will never gamble legally.

Approval question

For sports betting to be legalised, parliamentary approval will be needed to create a new law, and politically this will be a hard concept to offer.

"Even though many individuals are associated with some sort of gaming - it's still a controversial concern for numerous," states our unnamed punter.

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

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

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