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 needing 17 runs to win versus Australia.

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

He has made more than 10 hire the last thirty minutes - not to talk about the match but to keep revising 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 tells his bookmaker on the phone.

And a couple of minutes later on his forecast comes true, as India wins the match in a nail-biting surface.

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

For more than 3 decades 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 allowed India. Despite that, unlawful sports betting syndicates grow in the nation.

'Black cash'

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

Without any legal opportunity, punters place bets using their phones by making calls to bookmakers. Gamblers can bet on anything associated to the cricket match, from who is winning to the highest individual run scorer.

The majority of these transactions involve so-called "black money", 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 internet gambling, there is nothing comparable here.

And offshore wagering business are utilizing this loophole to tempt Indians. Despite the fact that there are no online wagering operators based out of India, a lot people have actually signed up accounts with overseas firms.

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

But despite this, it is "offline gaming", done through phone calls which dominate the market.

Calls for 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 secure down on corruption in the country's favourite sport.

The Justice RM Lodha Commission was established to suggest changes 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 came to light.

Two franchises have been banned for 2 years after some gamers and team officials were found guilty of fixing parts of the match at the behest of bookmakers.

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

Even bettors feel that legalising sports betting is a move in the right instructions.

"I don't mind paying some cash out my revenues, as long as I can gamble publicly," says our cricket gambler.

It would also open a big service chance for certified bookies and global online wagering business to establish operations in India.

And it would assist restrict match fixing in cricket and other sports betting, argue many, by assisting make deals associated with gambling more transparent.

"If you work along with sports betting business, you will have an extremely reliable approach of marking out match repairing," states George Oborne, who runs a mock sports betting website, India Bet.

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

However, there are limitations.

"Definitely there will be illegal sports betting due to the fact that (some) people wouldn't desire to leave an audit path by going into the white market," states Mr Oborne.

He includes that individuals who use unaccounted cash to position big bets will never gamble lawfully.

Approval question

For sports betting gambling to be legalised, parliamentary approval will be required to produce a brand-new law, and politically this will be a tough concept to offer.

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

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

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

Yet with the idea having actually been backed by a main panel for the first time, at least an argument has actually sparked around a subject - which previously was considered a taboo.