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 against Australia.

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

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

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

"I believe India is winning, make the modification," he tells his bookie on the phone.

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

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

For more than 3 decades he's been banking on cricket matches. We can't expose his name as what he's doing is unlawful in India.

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

'Black money'

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

Without any legal avenue, punters position bets utilizing 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 transactions include so-called "black cash", which is cash not stated to the taxman.

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

And overseas wagering companies are using this loophole to tempt Indians. Although there are no online wagering operators based out of India, a lot people have actually signed up accounts with offshore firms.

"Legally you can get away [with this], as the law is uncertain for online sports betting," says Mumbai- based legal representative 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 appointed 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 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 sports betting scandal came to light.

Two franchises have been prohibited for 2 years after some players and team officials were found guilty of fixing parts of the match at the wish of bookmakers.

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

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

"I don't mind paying some cash out my revenues, as long as I can bet openly," states our cricket gambler.

It would likewise open a big organization chance for licensed bookmakers and worldwide online sports betting companies to set up operations in India.

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

"If you work together with sports betting business, you will have an extremely effective approach of stamping out match fixing," states George Oborne, who runs a mock sports betting website, India Bet.

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

However, there are constraints.

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

He includes that individuals who use unaccounted money to place big bets will never bet legally.

Approval question

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

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

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

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

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