Howzat? The clamour to legalise sports betting 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 against Australia.

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

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

Five minutes earlier his cash was on Australia, and now as the Indian batsman prepares yourself to deal with the last over he's changed his mind.

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

And a couple of minutes later his forecast comes to life, as India wins the match in a nail-biting finish.

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

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

Other than horse racing, sports betting wagering of any kind is not allowed in India. Despite that, illegal sports betting distributes prosper in the nation.

'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 sports betting money is directed towards cricket.

Without any legal avenue, punters position 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.

Most of these deals involve so-called "black money", which is cash not stated to the taxman.

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

And offshore wagering companies are using this loophole to lure Indians. Even though there are no online sports betting operators based out of India, a lot people have signed up accounts with offshore firms.

"Legally you can escape [with this], as the law is ambiguous for online sports betting," says Mumbai- based legal representative HP Ranina.

But regardless of this, it is "offline gambling", 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 idea, stating it would assist clamp down on corruption in the country's favourite sport.

The Justice RM Lodha Commission was set up to recommend modifications in the functioning of India's cricket regulative body, the Board of Control for Cricket in India (BCCI), after the 2013 Indian Premier League wagering scandal came to light.

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

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

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

"I don't mind paying some cash out my revenues, as long as I can bet openly," states our cricket gambler.

It would likewise open a huge business opportunity for licensed bookmakers and global online wagering companies to set up operations in India.

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

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

But lots of likewise think, that the taxes levied on the gambler and the bookie will need to be reasonable to make it attractive enough for them to bet lawfully.

However, there are constraints.

"Definitely there will be unlawful sports betting due to the fact that (some) people would not desire to leave an audit trail by entering the white market," says Mr Oborne.

He adds that individuals who use unaccounted cash to place huge bets will never gamble legally.

Approval question

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

"Even however many individuals are involved in some sort of gambling - it's still a questionable issue for many," states our unnamed punter.

And considered that India has a federal structural - each state will need to likewise pass a separate law to legalise sports betting gambling in their territory.

"The procedure is so long and challenging that it will take years," says Mr Ranina."That's why, we are negative about this ending up being a reality anytime soon."

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