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 requiring 17 go to win versus Australia.

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

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

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

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

And a couple of minutes later his forecast 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 3 years he's been wagering on cricket matches. We can't reveal his name as what he's doing is unlawful in India.

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

'Black cash'

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

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

The majority of these transactions include so-called "black money", which is money not stated to the taxman.

The 1867 Public Gambling Act bars any kind of gaming in India, however unlike in the US which has a law forbiding internet gambling, there is nothing similar 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 offshore companies.

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

But in spite of this, it is "offline gambling", done through 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 idea, stating it would assist clamp down on corruption in the country's favourite sport.

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

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

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

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

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

It would likewise open a huge organization chance for licensed bookmakers and international online sports betting business to set up operations in India.

And it would help limit match fixing in cricket and other sports betting, argue many, by assisting make deals involved in sports betting more transparent.

"If you work along with sports betting companies, you will have a really efficient method of stamping out match fixing," says George Oborne, who runs a mock wagering site, India Bet.

But lots of also believe, that the taxes imposed on the bettor and the bookmaker will need to be affordable to make it attractive enough for them to gamble legally.

However, there are restrictions.

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

He includes that people who utilize unaccounted money to place huge bets will never ever gamble lawfully.

Approval concern

For sports betting to be legalised, parliamentary approval will be needed to produce a brand-new law, and politically this will be a difficult idea to offer.

"Despite the fact that many individuals are included in some sort of gambling - it's still a controversial issue for numerous," states our unnamed punter.

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

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

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