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

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

He has actually made more than 10 contact the last 30 minutes - not to discuss the match however to keep revising his bet.

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

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

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

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

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

Other than horse racing, sports betting wagering of any kind is not enabled in India. Despite that, unlawful wagering syndicates grow in the country.

'Black cash'

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

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

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

The 1867 Public Gambling Act bars any kind of gambling in India, but unlike in the US which has a law restricting web gambling, there is absolutely nothing similar here.

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

"Legally you can escape [with this], as the law is uncertain for online gambling," states Mumbai- based legal representative 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 assist clamp down on corruption in the nation'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 came to light.

Two franchises have actually been prohibited for two years after some gamers and group officials were discovered guilty of fixing parts of the match at the request of bookies.

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 ideal instructions.

"I don't mind paying some cash out my earnings, as long as I can bet openly," states our cricket bettor.

It would also open a huge business chance for licensed bookies and worldwide online wagering companies to set up operations in India.

And it would help restrict match fixing in cricket and other sports betting, argue many, by assisting make transactions associated with gambling more transparent.

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

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

However, there are limitations.

"Definitely there will be unlawful wagering since (some) individuals would not want to leave an audit trail by going into the white market," says Mr Oborne.

He adds that individuals who use unaccounted money to position big bets will never ever bet lawfully.

Approval question

For sports betting gambling to be legalised, parliamentary approval will be needed to create a brand-new law, and politically this will be a difficult concept to sell.

"Even however many individuals are involved in some sort of sports betting - it's still a controversial concern for many," states our unnamed punter.

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

"The procedure is so long and difficult that it will take years," states Mr Ranina."That's why, we are cynical about this ending up being a truth anytime quickly."

Yet with the concept having actually been backed by an official panel for the first time, at least a dispute has actually sparked around a topic - which previously was considered a taboo.