Howzat? The clamour to legalise sports betting wagering 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 versus Australia.

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

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

Five minutes previously his money was on Australia, and now as the Indian batsman prepares to face the last over he's altered his mind.

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

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

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

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 of any kind is not allowed in India. Despite that, unlawful wagering syndicates flourish in the country.

'Black cash'

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

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

The 1867 Public Gambling Act bars any type of sports betting in India, but unlike in the US which has a law prohibiting internet gaming, there is nothing similar here.

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

"Legally you can get away [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 sports betting", done through phone calls which control the marketplace.

Calls for legalisation

The clamour to legalise wagering in cricket has grown after a panel appointed by India's Supreme Court proposed the idea, stating it would help clamp down on corruption in the nation's favourite sport.

The Justice RM Lodha Commission was established to suggest modifications 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 players and team authorities were discovered guilty of fixing parts of the match at the behest of bookmakers.

The panel also argues that legalised wagering will generate tax earnings for the exchequer that might amount to $2bn a year.

Even gamblers feel that legalising sports betting wagering is a relocation in the ideal direction.

"I do not mind paying some money out my profits, as long as I can bet openly," states our cricket bettor.

It would also open a huge company opportunity for certified bookies and international online sports betting business to establish operations in India.

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

"If you work alongside sports betting companies, you will have an extremely effective approach of marking out match repairing," says George Oborne, who runs a mock wagering website, India Bet.

But lots of likewise think, that the taxes imposed on the gambler and the bookie will need to be affordable to make it appealing enough for them to gamble legally.

However, there are limitations.

"Definitely there will be unlawful wagering because (some) individuals would not wish to leave an audit trail by going into the white market," says Mr Oborne.

He includes that people who use unaccounted money to place big bets will never gamble legally.

Approval concern

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

"Despite the fact that numerous people are associated with some sort of gaming - it's still a questionable issue for numerous," says our unnamed punter.

And provided that India has a federal structural - each state will need 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 negative about this ending up being a truth anytime soon."

Yet with the idea having actually been endorsed by a main panel for the very first time, a minimum of a debate has fired up around a topic - which previously was considered a taboo.