Howzat? The clamour to legalise sports betting 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 requiring 17 runs to win versus Australia.

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

He has made more than 10 employ the last thirty minutes - not to go over the match but to keep modifying his bet.

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

"I believe India is winning, make the change," he informs his bookie on the phone.

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

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

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

Besides horse racing, sports betting wagering of any kind is not allowed in India. Despite that, illegal sports betting distributes thrive in the country.

'Black money'

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

Without any legal avenue, punters place bets utilizing their phones by making calls to bookies. Gamblers can bank on anything related to the cricket match, from who is winning to the highest specific run scorer.

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

The 1867 Public Gambling Act bars any kind of sports betting in India, however unlike in the US which has a law prohibiting web gaming, there is absolutely nothing comparable here.

And offshore wagering business are utilizing this loophole to lure Indians. Despite the fact that there are no online wagering operators based out of India, a lot people have actually signed up accounts with overseas firms.

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

But in spite of this, it is "offline gambling", done through call which control the marketplace.

Calls for legalisation

The clamour to legalise sports betting 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 country's favourite sport.

The Justice RM Lodha Commission was set up to recommend changes in the functioning of India's cricket regulative body, the Board of Control for Cricket in India (BCCI), after the 2013 Indian Premier League wagering scandal emerged.

Two franchises have been prohibited for two years after some gamers and team officials were condemned of repairing parts of the match at the behest of bookies.

The panel also argues that legalised wagering will bring in tax revenues for the exchequer that could total up to $2bn a year.

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

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

It would likewise open a big organization chance for certified bookmakers 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 lots of, by assisting make transactions associated with sports betting more transparent.

"If you work together with wagering business, you will have a really effective approach of stamping out match fixing," says George Oborne, who runs a mock sports betting website, India Bet.

But lots of likewise believe, that the taxes imposed on the bettor and the bookmaker will need to be reasonable to make it appealing enough for them to bet lawfully.

However, there are constraints.

"Definitely there will be prohibited sports betting because (some) individuals would not wish to leave an audit trail by entering the white market," says Mr Oborne.

He adds that people who utilize unaccounted cash to put huge bets will never bet 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 tough idea to sell.

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

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

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

Yet with the concept having been backed by a main panel for the very first time, a minimum of a dispute has actually fired up around a topic - which previously was thought about a taboo.