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 runs to win versus Australia.

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

He has made more than 10 employ the last thirty minutes - not to go over the match but to keep modifying his bet.

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

"I believe India is winning, make the modification," he informs his bookmaker on the phone.

And a few minutes later his forecast becomes a reality, as India wins the match in a nail-biting surface.

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

For more than three years he's been sports betting on cricket matches. We can't expose 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, prohibited sports betting syndicates prosper in the nation.

'Black money'

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 gambling money is directed towards cricket.

With no legal opportunity, punters position bets using their phones by making calls to bookmakers. Gamblers can wager on anything related to the cricket match, from who is winning to the greatest individual run scorer.

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

The 1867 Public Gambling Act bars any type of sports betting in India, however unlike in the US which has a law restricting internet gaming, there is nothing comparable here.

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

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

But in spite of this, it is "offline gambling", done through call which dominate the marketplace.

Calls for legalisation

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

The Justice RM Lodha Commission was established to recommend modifications in the performance of India's cricket regulatory body, the Board of Control for Cricket in India (BCCI), after the 2013 Indian Premier League sports betting scandal emerged.

Two franchises have actually been prohibited for 2 years after some gamers and group authorities were condemned of fixing parts of the match at the wish of bookies.

The panel also argues that legalised sports betting will bring in tax incomes for the exchequer that could total up to $2bn a year.

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

"I do not mind paying some cash out my revenues, as long as I can gamble openly," states our cricket gambler.

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

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

"If you work together with sports betting companies, you will have an extremely reliable technique of marking out match repairing," states George Oborne, who runs a mock sports betting website, India Bet.

But numerous also think, that the taxes levied on the gambler and the bookie will need to be reasonable to make it appealing enough for them to bet lawfully.

However, there are constraints.

"Definitely there will be illegal sports betting since (some) individuals wouldn't wish to leave an audit path by going into the white market," says Mr Oborne.

He includes that people who utilize unaccounted cash to position big bets will never ever bet legally.

Approval question

For sports betting to be legalised, parliamentary approval will be required to produce a new law, and politically this will be a hard concept to sell.

"Even however many individuals are associated with some sort of gaming - it's still a questionable concern for many," says our unnamed punter.

And given 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," states Mr Ranina."That's why, we are cynical about this coming true anytime soon."

Yet with the concept having actually been endorsed by an official panel for the very first time, at least a debate has sparked around a topic - which up until now was thought about a taboo.