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 needing 17 runs to win versus Australia.

In his two-bedroom home situated in central Mumbai, a middle-aged man is enjoying the game, nervously. He's resting on the edge of his grey colour couch with his smart phone glued to his best hand.

He has made more than 10 contact the last 30 minutes - not to discuss the match but to keep revising his bet.

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

"I think India is winning, make the modification," he informs his bookmaker on the phone.

And a couple of minutes later on his prediction comes true, as India wins the match in a nail-biting finish.

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

For more than three decades he's been banking on cricket matches. We can't expose his name as what he's doing is prohibited in India.

Besides horse racing, sports betting of any kind is not permitted in India. Despite that, unlawful wagering syndicates flourish in the nation.

'Black money'

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

With no legal avenue, punters place bets utilizing their phones by making calls to bookmakers. Gamblers can bank on anything associated to the cricket match, from who is winning to the greatest private run scorer.

The majority of these transactions involve so-called "black money", 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 gaming, there is nothing similar here.

And offshore wagering companies are utilizing this loophole to draw Indians. Despite the fact that there are no online sports betting operators based out of India, a lot individuals have actually signed up accounts with offshore companies.

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

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

Require legalisation

The clamour to legalise sports betting in cricket has actually grown after a panel selected by India's Supreme Court proposed the concept, stating it would assist clamp down on corruption in the nation's preferred 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 prohibited for 2 years after some gamers and group officials were condemned of fixing parts of the match at the request of bookies.

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

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

"I don't mind paying some money out my earnings, as long as I can gamble openly," says our cricket gambler.

It would likewise open a substantial company chance for licensed bookies and worldwide online sports betting companies to set up operations in India.

And it would help restrict match fixing in cricket and other sports betting, argue many, by helping make transactions involved in gambling more transparent.

"If you work together with wagering companies, you will have a very reliable technique of stamping out match repairing," says George Oborne, who runs a mock wagering site, India Bet.

But numerous also believe, that the taxes imposed on the gambler and the bookmaker will have to be affordable to make it attractive enough for them to gamble legally.

However, there are restrictions.

"Definitely there will be unlawful sports betting since (some) people would not want to leave an audit path by going into the white market," states Mr Oborne.

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

Approval question

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

"Despite the fact that lots of people are involved in some sort of gambling - it's still a questionable problem for many," 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 in their territory.

"The process is so long and difficult that it will take years," says Mr Ranina."That's why, we are cynical about this ending up being a reality anytime quickly."

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