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 requiring 17 runs to win against Australia.

In his two-bedroom house situated in main Mumbai, a middle-aged guy is seeing the video game, nervously. He's sitting on the edge of his grey colour sofa with his cellphone glued to his right-hand man.

He has actually made more than 10 contact the last thirty minutes - not to go over the match however 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 change," he tells his bookie on the phone.

And a couple of minutes later his forecast comes to life, as India wins the match in a nail-biting surface.

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

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

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

'Black cash'

According to the Doha-based International Centre for sports betting Security, India's unlawful sports betting wagering market is worth some $150bn a year. And much of that sports betting money 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 highest private run scorer.

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

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

And offshore wagering business are utilizing this loophole to tempt Indians. Even though there are no online wagering operators based out of India, a lot individuals have signed up accounts with offshore companies.

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

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

Calls for legalisation

The clamour to legalise sports betting in cricket has actually 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 wagering scandal came to light.

Two franchises have actually been banned for 2 years after some players and group authorities were condemned of fixing parts of the match at the behest of bookmakers.

The panel also argues that legalised sports betting will bring in tax earnings for the exchequer that could amount to $2bn a year.

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

"I do not mind paying some cash out my profits, as long as I can gamble openly," says our cricket bettor.

It would likewise open a substantial business chance for certified bookies and worldwide online sports betting companies to set up operations in India.

And it would assist restrict match fixing in cricket and other sports betting, argue lots of, by helping make transactions included in sports betting more transparent.

"If you work together with sports betting business, you will have a really efficient technique of marking out match repairing," says George Oborne, who runs a mock sports betting website, India Bet.

But many likewise believe, that the taxes imposed on the bettor and the bookie will need to be sensible to make it attractive enough for them to gamble lawfully.

However, there are limitations.

"Definitely there will be illegal sports betting since (some) people wouldn't want to leave an audit path by entering the white market," states Mr Oborne.

He includes that individuals who use unaccounted money to position big bets will never bet 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 difficult idea to offer.

"Even though numerous people are involved in some sort of gambling - it's still a questionable concern for many," says our unnamed punter.

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

"The process is so long and challenging that it will take years," says Mr Ranina."That's why, we are negative about this becoming a truth anytime quickly."

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