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 versus Australia.

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

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

Five minutes earlier his cash was on Australia, today as the Indian batsman prepares to face the last over he's altered his mind.

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

And a couple of minutes later his forecast becomes a reality, as India wins the match in a nail-biting finish.

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

Other than horse racing, sports betting of any kind is not allowed India. Despite that, illegal sports betting syndicates 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 gambling cash is directed towards cricket.

With no legal opportunity, punters position bets utilizing their phones by making calls to bookmakers. Gamblers can bet on anything related to the cricket match, from who is winning to the highest individual run scorer.

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

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

And overseas wagering companies are using this loophole to draw Indians. Even though there are no online wagering operators based out of India, a lot people have registered accounts with offshore firms.

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

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

Require legalisation

The clamour to legalise wagering in cricket has actually grown after a panel selected by India's Supreme Court proposed the concept, saying it would help clamp down on corruption in the nation's preferred sport.

The Justice RM Lodha Commission was established to recommend modifications in the performance 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 repairing parts of the match at the behest of bookmakers.

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

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

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

It would also open a big service chance for certified bookies and international online wagering business 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 involved in sports betting more transparent.

"If you work together with sports betting companies, you will have a very efficient approach of stamping out match repairing," says George Oborne, who runs a mock sports betting site, India Bet.

But many also think, 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 constraints.

"Definitely there will be unlawful wagering due to the fact that (some) people would not wish to leave an audit path by getting in the white market," states Mr Oborne.

He includes that individuals who use unaccounted money to position huge bets will never gamble lawfully.

Approval concern

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

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

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

"The procedure is so long and tricky that it will take years," says Mr Ranina."That's why, we are cynical about this becoming a reality anytime quickly."

Yet with the idea having been backed by an official panel for the very first time, a minimum of a debate has actually fired up around a subject - which previously was thought about a taboo.