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

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

He has made more than 10 calls in the last 30 minutes - not to discuss the match however to keep modifying his bet.

Five minutes earlier his money was on Australia, and now as the Indian batsman prepares to face the last over he's changed his mind.

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

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

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

For more than 3 decades he's been wagering on cricket matches. We can't reveal 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, illegal sports betting syndicates flourish in the country.

'Black money'

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

Without any legal opportunity, punters put bets utilizing their phones by making calls to bookies. Gamblers can bank on anything associated to the cricket match, from who is winning to the greatest specific run scorer.

The majority of these deals include so-called "black cash", which is money 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 restricting internet gaming, there is nothing similar here.

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

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

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

Calls for legalisation

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

The Justice RM Lodha Commission was established 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 betting scandal emerged.

Two franchises have actually been prohibited for 2 years after some players and team officials were found guilty of fixing parts of the match at the behest of bookies.

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

Even gamblers feel that legalising sports betting wagering is a move in the right direction.

"I do not mind paying some money out my earnings, as long as I can gamble publicly," states our cricket bettor.

It would also open a huge organization chance for certified bookies and global online wagering business to set up operations in India.

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

"If you work alongside sports betting companies, you will have an extremely reliable method of stamping out match repairing," states George Oborne, who runs a mock wagering site, India Bet.

But many also believe, that the taxes imposed on the gambler and the bookmaker will need to be sensible to make it attractive enough for them to gamble legally.

However, there are limitations.

"Definitely there will be illegal wagering since (some) individuals wouldn't want to leave an audit trail by getting in the white market," states Mr Oborne.

He includes that individuals who utilize unaccounted cash to place huge bets will never bet legally.

Approval concern

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

"Despite the fact that many individuals are associated with some sort of gambling - it's still a questionable issue for many," says our unnamed punter.

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

"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 been backed by an official panel for the very first time, a minimum of an argument has actually sparked around a subject - which previously was considered a taboo.