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 requiring 17 go to win versus Australia.

In his two-bedroom house located in central Mumbai, a middle-aged guy is watching 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 calls in the last 30 minutes - not to talk about the match but to keep revising his bet.

Five minutes earlier his cash was on Australia, today as the Indian batsman gets prepared to deal with the last over he's altered his mind.

"I believe 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 surface.

"I have made $200 today," he states with a childlike 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 unlawful in India.

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

'Black money'

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

Without any legal opportunity, punters position 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 specific run scorer.

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

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

And offshore wagering companies are utilizing this loophole to draw Indians. Although there are no online wagering operators based out of India, a lot people have registered accounts with offshore companies.

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

But regardless of this, it is "offline gaming", done through telephone call which dominate the market.

Calls for legalisation

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

Two franchises have been banned for 2 years after some gamers and group officials were condemned of fixing parts of the match at the behest of bookmakers.

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

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

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

It would likewise open a huge service chance for certified bookmakers and international online wagering business to establish operations in India.

And it would help limit match repairing in cricket and other sports betting, argue lots of, by assisting make deals involved in sports betting more transparent.

"If you work along with wagering companies, you will have a really reliable technique of stamping out match fixing," states George Oborne, who runs a mock sports betting website, India Bet.

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

However, there are restrictions.

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

He adds that people who utilize unaccounted cash to put big bets will never ever gamble lawfully.

Approval question

For sports betting gambling to be legalised, parliamentary approval will be required to develop a new law, and politically this will be a difficult idea to offer.

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

And provided 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 ending up being a truth anytime quickly."

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