Howzat? The clamour to legalise sports betting wagering in India

5 February 2016

By Sameer Hashmi

Mumbai Business reporter

It is the last over of the cricket match, with India needing 17 go 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 best hand.
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He has made more than 10 contact the last thirty minutes - not to talk about the match but to keep modifying his bet.

Five minutes previously his money was on Australia, but now as the Indian batsman prepares to face the last over he's changed his mind.
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"I believe India is winning, make the change," he tells his bookie on the phone.

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

"I have made $200 today," he states with a childish glee.
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For more than three years he's been banking on cricket matches. We can't reveal his name as what he's doing is unlawful in India.

Aside from horse racing, sports betting wagering of any kind is not allowed in India. Despite that, unlawful wagering syndicates prosper in the country.

'Black cash'

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

With no legal opportunity, 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 greatest individual run scorer.

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

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

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

"Legally you can escape [with this], as the law is unclear for online gambling," states Mumbai- based lawyer HP Ranina.

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

Require legalisation

The clamour to legalise wagering in cricket has 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 preferred sport.

The Justice RM Lodha Commission was set up to changes 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 emerged.

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 request of bookmakers.

The panel also argues that legalised sports betting will bring in tax revenues for the exchequer that might amount to $2bn a year.

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

"I do not mind paying some cash out my earnings, as long as I can gamble openly," says our cricket gambler.

It would likewise open a substantial business opportunity for certified bookies and global online wagering companies to establish operations in India.

And it would help restrict match repairing in cricket and other sports betting, argue many, by assisting make transactions associated with gambling more transparent.

"If you work alongside wagering business, you will have a really reliable method of stamping out match repairing," states George Oborne, who runs a mock sports betting website, India Bet.
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But numerous also believe, that the taxes imposed on the gambler and the bookie will have to be reasonable to make it appealing enough for them to bet lawfully.

However, there are constraints.

"Definitely there will be illegal sports betting because (some) individuals wouldn't desire to leave an audit path by getting in the white market," states Mr Oborne.

He adds that people who utilize unaccounted money to put 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 many individuals are associated with some sort of sports betting - it's still a controversial concern for many," says our unnamed punter.

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

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

Yet with the concept having been backed by a main panel for the very first time, a minimum of an argument has ignited around a topic - which till now was thought about a taboo.