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 requiring 17 go to win against Australia.

In his two-bedroom house located in main Mumbai, a middle-aged male is viewing the video game, nervously. He's resting on the edge of his grey colour sofa with his mobile phone glued to his right hand.

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

Five minutes earlier his cash was on Australia, and now as the Indian batsman gets prepared to deal with the last over he's changed his mind.

"I think India is winning, make the change," he informs his bookie on the phone.

And a few minutes later on his prediction comes to life, as India wins the match in a nail-biting finish.

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

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

Besides horse racing, sports betting wagering of any kind is not enabled in India. Despite that, prohibited wagering distributes flourish in the country.

'Black money'

According to the Doha-based International Centre for sports betting Security, India's unlawful 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 bookies. Gamblers can bank on anything related to the cricket match, from who is winning to the greatest specific run scorer.

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

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

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

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

But despite this, it is "offline gambling", done through phone calls which control the marketplace.

Calls for legalisation

The clamour to legalise wagering in cricket has grown after a panel selected 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 set up to recommend 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 sports betting scandal came to light.

Two franchises have been banned for two years after some players and group officials were condemned of fixing parts of the match at the request of bookmakers.

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

Even bettors feel that legalising sports betting is a move in the right instructions.

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

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

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

"If you work together with wagering companies, you will have a very reliable method of stamping out match fixing," states George Oborne, who runs a mock sports betting website, India Bet.

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

However, there are limitations.

"Definitely there will be prohibited wagering because (some) individuals wouldn't wish to leave an audit trail by getting in the white market," says Mr Oborne.

He adds that individuals who utilize unaccounted cash to put big bets will never gamble legally.

Approval concern

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

"Although lots of people are included in some sort of gaming - it's still a controversial problem for many," says our unnamed punter.

And offered that India has a federal structural - each state will need to also 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 cynical about this coming true anytime quickly."

Yet with the idea having been endorsed by an official panel for the first time, a minimum of an argument has sparked around a topic - which up until now was considered a taboo.