Howzat? The clamour to legalise sports betting wagering in India

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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 versus 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 couch with his smart phone glued to his right-hand man.

He has actually made more than 10 calls in the last 30 minutes - not to talk about the match however to keep modifying 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 altered his mind.

"I believe India is winning, make the modification," he tells his bookmaker on the phone.

And a few minutes later on his forecast comes real, as India wins the match in a nail-biting surface.

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

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

Aside from horse racing, sports betting of any kind is not permitted in India. Despite that, unlawful sports betting syndicates prosper in the country.

'Black money'

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

With no legal opportunity, punters place bets using their phones by making calls to bookmakers. Gamblers can bank on anything associated to the cricket match, from who is winning to the highest specific run scorer.

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

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

And overseas wagering business are using this loophole to tempt 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 unclear for online sports betting," says Mumbai- based legal representative HP Ranina.

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

Calls for legalisation

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

The Justice RM Lodha Commission was set up to suggest 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 emerged.

Two franchises have actually been banned for 2 years after some players and group officials were found guilty of repairing parts of the match at the request of bookmakers.

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

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

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

It would also open a substantial company chance for certified bookmakers and global online wagering business to set up operations in India.

And it would assist limit match fixing in and other sports betting, argue many, by helping make deals included in gambling more transparent.

"If you work alongside wagering business, you will have an extremely effective method of marking out match repairing," states George Oborne, who runs a mock sports betting site, India Bet.
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But lots of also think, that the taxes levied on the gambler and the bookie will need to be reasonable to make it attractive enough for them to bet lawfully.

However, there are limitations.

"Definitely there will be unlawful sports betting because (some) individuals wouldn't desire to leave an audit trail by entering the white market," says Mr Oborne.

He adds that people who utilize unaccounted cash to put big bets will never gamble lawfully.

Approval concern

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

"Although numerous individuals are associated with some sort of gambling - it's still a controversial problem for lots of," 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 territory.
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"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 soon."

Yet with the idea having actually been backed by a main panel for the very first time, at least a dispute has fired up around a subject - which up until now was considered a taboo.