Howzat? The clamour to legalise sports betting 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 requiring 17 go to win versus Australia.

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

He has actually made more than 10 employ the last 30 minutes - not to go over the match however to keep modifying his bet.

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

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

And a few minutes later his forecast comes real, as India wins the match in a nail-biting surface.

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

For more than 3 years he's been sports betting on cricket matches. We can't reveal his name as what he's doing is unlawful in India.

Besides horse racing, sports betting of any kind is not allowed in India. Despite that, illegal 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 is worth some $150bn a year. And much of that gambling money is directed towards cricket.

With no legal avenue, punters place 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 greatest private run scorer.

The majority of these deals involve so-called "black cash", which is money not declared 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 web gambling, there is absolutely nothing comparable here.

And offshore sports betting business are using this loophole to lure Indians. Despite the fact that there are no online wagering operators based out of India, a lot people have actually registered accounts with offshore companies.

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

But in spite of this, it is "offline gaming", done through telephone call which control the marketplace.

Require 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 assist clamp down on corruption in the nation's preferred sport.

The Justice RM Lodha Commission was established to suggest modifications in the functioning of India's cricket regulatory body, the Board of Control for Cricket in India (BCCI), after the 2013 Indian Premier League wagering scandal came to light.

Two franchises have actually been prohibited for two years after some players and group officials were discovered guilty of repairing 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 gamblers feel that legalising sports betting wagering is a move in the best instructions.

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

It would likewise open a big business chance for certified bookies and global online wagering business to set up operations in India.

And it would help restrict match repairing in cricket and other sports betting, argue numerous, by assisting make deals involved in sports betting more transparent.

"If you work alongside sports betting business, you will have a really effective method of marking out match repairing," states George Oborne, who runs a mock sports betting website, India Bet.

But many also think, that the taxes levied on the gambler and the bookmaker will have to be affordable to make it attractive enough for them to gamble lawfully.

However, there are constraints.

"Definitely there will be unlawful sports betting because (some) people would not want to leave an audit path by getting in the white market," says Mr Oborne.

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

Approval concern

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

"Although lots of people are associated with some sort of gambling - it's still a controversial problem for lots of," states our unnamed punter.

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

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

Yet with the idea having been backed by an official panel for the first time, at least a debate has fired up around a subject - which up until now was thought about a taboo.