Howzat? The clamour to legalise sports betting wagering 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 needing 17 go to win against Australia.

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

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

Five minutes earlier his cash was on Australia, today as the Indian batsman gets ready to deal with the last over he's changed 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 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 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 wagering of any kind is not allowed India. Despite that, unlawful sports betting distributes grow in the country.

'Black money'

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 cash is directed towards cricket.

Without any legal opportunity, punters place bets using their phones by making calls to bookies. Gamblers can bet on anything associated to the cricket match, from who is winning to the highest specific run scorer.

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

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

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

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

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

Calls for legalisation

The clamour to in cricket has grown after a panel appointed by India's Supreme Court proposed the concept, saying it would assist secure down on corruption in the country's favourite sport.

The Justice RM Lodha Commission was established to recommend changes in the performance 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 been banned for two years after some gamers and group officials were discovered guilty of repairing parts of the match at the request of bookies.

The panel likewise 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 right instructions.

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

It would also open a big company chance for licensed bookmakers and international online wagering companies to set up operations in India.

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

"If you work alongside wagering business, you will have a very reliable approach of stamping out match fixing," says George Oborne, who runs a mock wagering website, India Bet.

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

However, there are limitations.

"Definitely there will be illegal sports betting since (some) individuals would not desire to leave an audit path by going into the white market," says Mr Oborne.

He includes that individuals who utilize unaccounted money to position big bets will never bet legally.

Approval question

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

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

And considered that India has a federal structural - each state will have to likewise pass a different law to legalise sports betting in their area.

"The procedure is so long and tricky that it will take years," states Mr Ranina."That's why, we are negative about this ending up being a truth anytime quickly."

Yet with the idea having actually been backed by an official panel for the very first time, at least a debate has ignited around a subject - which previously was considered a taboo.