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 go to win versus Australia.

In his two-bedroom home located in main Mumbai, a middle-aged male is viewing the video game, nervously. He's resting on the edge of his grey colour sofa with his cellphone glued to his best hand.

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

Five minutes previously his cash was on Australia, but now as the Indian batsman prepares yourself 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 on his forecast comes to life, as India wins the match in a nail-biting finish.

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

For more than 3 decades he's been sports betting on cricket matches. We can't reveal his name as what he's doing is illegal in India.

Besides horse racing, sports betting of any kind is not allowed 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 prohibited sports betting wagering market is worth some $150bn a year. And much of that gambling money is directed towards cricket.

Without any legal opportunity, punters put bets utilizing their phones by making calls to bookmakers. Gamblers can bet on anything associated to the cricket match, from who is winning to the highest private run scorer.

Most of these transactions include 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, however unlike in the US which has a law forbiding internet sports betting, there is absolutely nothing similar here.

And offshore sports betting business are utilizing this loophole to lure Indians. Despite the fact that there are no online sports betting operators based out of India, a lot people have registered accounts with overseas companies.

"Legally you can get away [with this], as the law is unclear for online gambling," says Mumbai- based attorney HP Ranina.

But despite this, it is "offline gambling", done through phone calls which dominate the market.

Calls for legalisation

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

The Justice RM Lodha Commission was set up to suggest modifications 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 came to light.

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

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

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

"I don't mind paying some money out my profits, as long as I can bet publicly," says our cricket gambler.

It would likewise open a big organization opportunity for licensed bookies and worldwide online wagering companies to set up operations in India.

And it would assist limit match fixing in cricket and other sports betting, argue many, by helping make transactions associated with gambling more transparent.

"If you work together with sports betting companies, you will have a very reliable approach of stamping out match repairing," says George Oborne, who runs a mock wagering website, India Bet.

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

However, there are restrictions.

"Definitely there will be prohibited wagering because (some) individuals would not desire to leave an audit trail by going into the white market," states Mr Oborne.

He adds that individuals who utilize unaccounted money to put huge bets will never ever bet legally.

Approval concern

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

"Even though many individuals are involved in some sort of gaming - it's still a controversial concern for numerous," states 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 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 debate has actually ignited around a topic - which previously was thought about a taboo.