Howzat? The clamour to legalise sports betting wagering in India

Published

5 February 2016

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By Sameer Hashmi

Mumbai Business reporter

It is the last over of the cricket match, with India needing 17 runs to win versus Australia.

In his two-bedroom house situated in main Mumbai, a middle-aged guy is watching the video game, nervously. He's resting on the edge of his grey colour sofa with his mobile phone glued to his right-hand man.

He has made more than 10 calls in the last 30 minutes - not to talk about the match but to keep modifying his bet.

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

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

And a couple of minutes later his prediction comes to life, 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 decades he's been wagering on cricket matches. We can't reveal his name as what he's doing is prohibited in India.

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

'Black money'

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

With no legal avenue, punters put bets utilizing their phones by making calls to bookmakers. Gamblers can wager on anything associated to the cricket match, from who is winning to the highest private run scorer.

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

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

And offshore sports betting 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 signed up accounts with offshore companies.

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

But regardless of this, it is "offline gaming", done through call which control 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, stating it would assist clamp down on corruption in the nation's favourite sport.

The Justice RM Lodha Commission was established to recommend 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 wagering scandal emerged.

Two franchises have actually been prohibited for 2 years after some players and group authorities were condemned of repairing parts of the match at the request of bookmakers.

The panel also argues that legalised wagering will generate tax earnings for the exchequer that might amount to $2bn a year.

Even gamblers feel that legalising sports betting wagering is a relocation in the best direction.

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

It would likewise open a big business opportunity for licensed bookies and international online wagering business to establish operations in India.

And it would help restrict match repairing in cricket and other sports betting, argue many, by helping make transactions involved in gambling more transparent.

"If you work along with sports betting business, you will have an extremely efficient technique of marking out match repairing," states George Oborne, who runs a mock wagering site, India Bet.

But many also think, that the taxes levied on the bettor and the bookmaker will need to be reasonable to make it appealing enough for them to bet legally.

However, there are limitations.

"Definitely there will be unlawful sports betting because (some) individuals would not wish to leave an audit path by going into the white market," says Mr Oborne.

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

Approval concern

For sports betting gambling to be legalised, parliamentary approval will be required to create a brand-new law, and politically this will be a hard idea to sell.

"Despite the fact that many individuals are associated with some sort of gaming - it's still a controversial issue for many," says our unnamed punter.

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

"The procedure is so long and tricky that it will take years," states Mr Ranina."That's why, we are negative about this coming true anytime quickly."

Yet with the concept having actually been endorsed by a main panel for the first time, a minimum of a dispute has actually sparked around a topic - which until now was considered a taboo.