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Howzat? The clamour to legalise sports betting wagering in India
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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 requiring 17 runs to win against Australia.

In his two-bedroom house situated in main Mumbai, a middle-aged male is seeing the video game, nervously. He's resting on the edge of his grey colour couch with his smart phone glued to his best hand.

He has actually made more than 10 contact the last thirty minutes - not to talk about the match but to keep modifying his bet.

Five minutes previously his money was on Australia, now as the Indian batsman prepares yourself to face the last over he's altered his mind.

"I believe India is winning, make the modification," he tells his bookie on the phone.

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

"I have actually 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 expose his name as what he's doing is illegal in India.

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

'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 cash is directed towards cricket.

Without any legal opportunity, punters place bets utilizing their phones by making calls to bookmakers. Gamblers can bank on anything associated to the cricket match, from who is winning to the highest 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 gaming in India, but unlike in the US which has a law restricting gambling, there is nothing comparable here.

And offshore sports betting business are utilizing this loophole to tempt Indians. Although there are no online sports betting operators based out of India, a lot people have registered accounts with overseas companies.

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

But despite this, it is "offline gambling", done through phone calls which control the market.

Require legalisation

The clamour to legalise sports betting in cricket has grown after a panel appointed by India's Supreme Court proposed the concept, saying it would assist clamp down on corruption in the country's preferred 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 sports betting scandal came to light.

Two franchises have actually been banned for 2 years after some players and group officials were found guilty of repairing parts of the match at the wish of bookies.

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

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

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

It would also open a huge business opportunity for certified bookmakers and global online wagering business to establish operations in India.

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

"If you work along with wagering business, you will have a very reliable method of marking out match repairing," states George Oborne, who runs a mock wagering site, India Bet.

But many also believe, that the taxes imposed on the bettor and the bookie will have to be affordable to make it attractive enough for them to gamble legally.

However, there are limitations.

"Definitely there will be prohibited sports betting due to the fact that (some) individuals wouldn't want to leave an audit path by getting in the white market," says Mr Oborne.

He includes that people who utilize unaccounted money to put huge bets will never ever gamble lawfully.

Approval question

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

"Despite the fact that many individuals are involved in some sort of gambling - it's still a controversial problem for many," says our unnamed punter.

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

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

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