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Howzat? The clamour to legalise sports betting in India

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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 needing 17 go to win versus Australia.

In his two-bedroom home located in central Mumbai, a middle-aged male is seeing the video game, nervously. He's sitting on the edge of his grey colour couch with his cellphone glued to his best hand.

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

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

"I believe India is winning, make the change," he informs his bookmaker on the phone.

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

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

For more than three years he's been wagering 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 India. Despite that, prohibited sports betting syndicates grow in the nation.

'Black money'

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

With no legal opportunity, punters put 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 specific run scorer.

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

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

And overseas 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 individuals have actually registered accounts with overseas firms.

"Legally you can escape [with this], as the law is ambiguous for online gaming," states Mumbai- based attorney HP Ranina.

But in spite of this, it is "offline sports betting", done through call which dominate the market.

Calls for legalisation

The clamour to legalise sports betting in cricket has grown after a panel designated by India's Supreme Court proposed the concept, 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 actually been banned for two years after some gamers and group authorities were found guilty of repairing parts of the match at the wish of bookies.

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

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

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

It would also open a big company opportunity for licensed bookies and global online sports betting companies to establish operations in India.

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

"If you work alongside wagering companies, you will have a really effective method of stamping out match repairing," states George Oborne, who runs a mock wagering site, India Bet.

But lots of also think, that the taxes levied on the bettor and the bookie will have to be affordable to make it attractive enough for them to gamble lawfully.

However, there are restrictions.

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

He adds that people who utilize unaccounted cash to place huge bets will never gamble legally.

Approval question

For sports betting to be legalised, parliamentary approval will be needed to create a new law, and politically this will be a hard idea to offer.

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

And given that India has a federal structural - each state will need to also pass a separate law to legalise sports betting gambling in their territory.
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"The procedure is so long and tricky that it will take years," states Mr Ranina."That's why, we are negative about this coming true anytime quickly."

Yet with the idea having been endorsed by an official panel for the first time, a minimum of a dispute has sparked around a topic - which previously was thought about a taboo.
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