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 runs to win against Australia.

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

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

Five minutes earlier his cash was on Australia, today 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 few minutes later on his forecast becomes a reality, as India wins the match in a nail-biting surface.

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

For more than three years he's been banking on cricket matches. We can't expose 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 sports betting distributes flourish in the nation.

'Black cash'

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

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

Most of these transactions involve so-called "black cash", which is money not stated to the taxman.

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

And offshore wagering business are using this loophole to draw Indians. Even though there are no online wagering operators based out of India, a lot people have actually signed up accounts with offshore companies.

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

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

Calls for legalisation

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

The Justice RM Lodha Commission was established to suggest changes in the performance 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 actually been banned for two years after some players and team officials were condemned of fixing parts of the match at the wish of bookmakers.

The panel likewise argues that legalised sports betting will bring in tax profits for the exchequer that could amount to $2bn a year.

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

"I don't mind paying some cash out my earnings, as long as I can bet openly," says our cricket bettor.

It would also open a big organization opportunity for certified bookies and international online wagering companies to set up operations in India.

And it would assist limit match repairing in cricket and other sports betting, argue numerous, by helping make transactions associated with gambling more transparent.

"If you work along with sports betting business, you will have a really efficient method of marking out match fixing," states George Oborne, who runs a mock wagering website, India Bet.

But numerous also believe, that the taxes imposed on the bettor and the bookmaker will need to be reasonable to make it attractive enough for them to bet legally.

However, there are restrictions.

"Definitely there will be illegal wagering because (some) people wouldn't wish to leave an audit trail by going into the white market," states Mr Oborne.

He adds that individuals who utilize unaccounted cash to position huge bets will never ever bet 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 hard idea to offer.

"Even though many individuals are associated with some sort of gaming - it's still a questionable problem for numerous," says our unnamed punter.

And considered 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 difficult that it will take years," states Mr Ranina."That's why, we are negative about this becoming a reality anytime soon."

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