Howzat? The clamour to legalise sports betting wagering in India

Published

5 February 2016

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By Sameer Hashmi

Mumbai Business reporter

It is the last over of the cricket match, with India needing 17 go to win against Australia.

In his two-bedroom home located in main Mumbai, a middle-aged guy is viewing the game, nervously. He's resting on the edge of his grey colour sofa with his mobile phone glued to his ideal 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 previously his cash was on Australia, and now as the Indian batsman prepares to deal with the last over he's altered his mind.

"I think India is winning, make the modification," 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 actually made $200 today," he says with a childish glee.

For more than 3 decades he's been sports betting 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 distributes flourish in the nation.

'Black money'

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

Without any legal opportunity, punters position bets using their phones by making calls to bookmakers. Gamblers can wager on anything related to the cricket match, from who is winning to the greatest individual run scorer.

Most 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 prohibiting web sports betting, there is nothing similar here.

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

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

But in spite of this, it is "offline gaming", 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, stating 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 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 actually been prohibited for 2 years after some players and group authorities were discovered guilty of fixing parts of the match at the wish of bookies.

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

Even bettors feel that legalising sports betting is a relocation in the best direction.

"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 substantial organization opportunity for licensed bookmakers and worldwide online sports betting business to establish operations in India.

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

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

But many likewise 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 legally.

However, there are restrictions.

"Definitely there will be illegal sports betting due to the fact that (some) individuals wouldn't want to leave an audit trail by going into the white market," states Mr Oborne.

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

Approval question

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 offer.

"Although many individuals are included in some sort of gaming - it's still a questionable concern for numerous," says our unnamed punter.

And provided 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 challenging that it will take years," states Mr Ranina."That's why, we are cynical about this coming true anytime soon."

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