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 requiring 17 runs to win versus Australia.

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

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

Five minutes previously 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 tells 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 finish.

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

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

Other than horse racing, sports betting of any kind is not allowed in India. Despite that, prohibited wagering syndicates thrive in the country.

'Black money'

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

Without any 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 greatest private run scorer.

Most of these transactions involve so-called "black money", which is money not declared to the taxman.

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

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

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

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

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, saying it would help clamp down on corruption in the country's preferred sport.

The Justice RM Lodha Commission was set up to recommend changes in the functioning of India's cricket regulatory 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 2 years after some players and team officials were found guilty of repairing parts of the match at the wish of bookies.

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

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

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

It would also open a huge organization opportunity for licensed bookies and worldwide online wagering companies to establish operations in India.

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

"If you work alongside sports betting companies, you will have a very reliable technique of stamping out match repairing," says George Oborne, who runs a mock sports betting website, India Bet.

But numerous likewise think, that the taxes levied on the bettor and the bookmaker will have to be affordable to make it appealing enough for them to bet lawfully.

However, there are limitations.

"Definitely there will be unlawful wagering since (some) people wouldn't want to leave an audit trail by getting in the white market," says Mr Oborne.

He includes that individuals who use unaccounted money to position big bets will never gamble legally.

Approval concern

For sports betting to be legalised, parliamentary approval will be required to develop a brand-new law, and politically this will be a tough idea to sell.

"Even however lots of people are included in some sort of sports betting - it's still a questionable problem for many," states our unnamed punter.

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

"The procedure is so long and difficult that it will take years," states Mr Ranina."That's why, we are negative about this coming true anytime quickly."

Yet with the concept having actually been backed by an official panel for the very first time, at least a debate has actually fired up around a topic - which previously was thought about a taboo.