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 needing 17 runs to win versus Australia.

In his two-bedroom house located in central Mumbai, a middle-aged male is enjoying 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 actually made more than 10 hire the last thirty minutes - not to go over the match however to keep revising his bet.

Five minutes earlier his cash was on Australia, and now as the Indian batsman prepares to deal with 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 his prediction comes true, 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 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 sports betting syndicates prosper in the country.

'Black money'

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

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

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

The 1867 Public Gambling Act bars any type of gaming in India, but unlike in the US which has a law forbiding internet gambling, there is nothing similar here.

And offshore sports betting companies are utilizing this loophole to lure Indians. Although there are no online wagering operators based out of India, a lot individuals have actually signed up accounts with offshore firms.

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

But in spite of this, it is "offline sports betting", done through phone calls which control the marketplace.

Calls for legalisation

The clamour to legalise sports betting in cricket has actually grown after a panel appointed by India's Supreme Court proposed the concept, stating it would help clamp down on corruption in the country's favourite sport.

The Justice RM Lodha Commission was established to suggest changes in the performance 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 prohibited for 2 years after some gamers and team officials were condemned of repairing parts of the match at the behest of bookmakers.

The panel likewise argues that legalised sports betting will generate tax incomes for the exchequer that might amount to $2bn a year.

Even gamblers feel that legalising sports betting is a move in the ideal instructions.

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

It would likewise open a huge business opportunity for licensed bookmakers and worldwide online sports betting business to set up operations in India.

And it would help limit match fixing in cricket and other sports betting, argue numerous, by assisting make transactions included in gambling more transparent.

"If you work together with wagering companies, you will have a really reliable technique of marking out match fixing," says George Oborne, who runs a mock wagering website, India Bet.

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

However, there are limitations.

"Definitely there will be prohibited sports betting since (some) individuals would not want to leave an audit path by entering the white market," states Mr Oborne.

He includes that individuals who utilize unaccounted money to position big bets will never bet lawfully.

Approval concern

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

"Even though many individuals are associated with some sort of gambling - it's still a questionable problem for many," 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 gambling in their area.

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

Yet with the idea having been backed by an official panel for the first time, a minimum of a debate has sparked around a subject - which up until now was thought about a taboo.