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 against Australia.

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

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

Five minutes earlier his cash was on Australia, now as the Indian batsman gets all set to face the last over he's altered his mind.

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

And a few minutes later on his prediction becomes a reality, as India wins the match in a nail-biting finish.

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

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

Besides horse racing, sports betting wagering of any kind is not allowed India. Despite that, unlawful wagering syndicates flourish in the country.

'Black cash'

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 money is directed towards cricket.

With no legal opportunity, punters place bets using their phones by making calls to bookmakers. Gamblers can bet on anything associated to the cricket match, from who is winning to the greatest private run scorer.

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

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

And overseas wagering companies 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 unclear for online gaming," states Mumbai- based legal representative HP Ranina.

But in spite of this, it is "offline sports betting", done through telephone call which dominate the market.

Require legalisation

The clamour to legalise wagering in cricket has grown after a panel selected by India's Supreme Court proposed the concept, stating it would help secure 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 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 been banned for two years after some gamers and group authorities were discovered guilty of repairing parts of the match at the wish of bookmakers.

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

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

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

It would likewise open a substantial business chance for licensed bookmakers and worldwide online wagering business to establish operations in India.

And it would help restrict match repairing in cricket and other sports betting, argue lots of, by assisting make deals associated with sports betting more transparent.

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

But lots of also believe, that the taxes levied on the gambler and the bookmaker will need to be sensible to make it appealing enough for them to gamble legally.

However, there are constraints.

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

He includes that individuals who use unaccounted cash to position big bets will never bet lawfully.

Approval question

For sports betting gambling 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 involved in some sort of gaming - it's still a questionable problem for many," states our unnamed punter.

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

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

Yet with the idea having actually been endorsed by a main panel for the very first time, at least a debate has actually ignited around a topic - which till now was considered a taboo.