Howzat? The clamour to legalise sports betting wagering in India

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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 go to win versus Australia.

In his two-bedroom house located in central Mumbai, a middle-aged man is seeing the game, nervously. He's resting on the edge of his grey colour sofa with his cellphone glued to his right-hand man.

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

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

"I think India is winning, make the change," he tells his bookmaker on the phone.

And a couple of minutes later on his forecast comes real, as India wins the match in a nail-biting surface.

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

For more than 3 decades he's been banking on cricket matches. We can't reveal his name as what he's doing is prohibited in India.

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

'Black money'

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

With no legal opportunity, punters put bets utilizing their phones by making calls to bookies. Gamblers can bet on anything associated to the cricket match, from who is winning to the highest specific run scorer.

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

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

And offshore wagering business are utilizing this loophole to lure Indians. Even though there are no online sports betting operators based out of India, a lot individuals have registered accounts with offshore companies.

"Legally you can get away [with this], as the law is unclear for online gaming," 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 appointed by India's Supreme Court proposed the concept, saying it would assist secure down on corruption in the country's favourite sport.

The 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 wagering scandal emerged.

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

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

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

"I don't mind paying some money out my earnings, as long as I can bet openly," says our cricket bettor.

It would likewise open a big business opportunity for certified bookies and international online wagering business to set up operations in India.

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

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

But lots of likewise believe, that the taxes imposed on the gambler and the bookmaker will have to be affordable to make it appealing enough for them to bet legally.

However, there are limitations.

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

He includes that individuals who use unaccounted money to put huge bets will never bet legally.
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Approval concern

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

"Even however many individuals are included in some sort of sports betting - it's still a controversial issue for numerous," states our unnamed punter.

And considered 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 cynical about this ending up being a reality anytime soon."

Yet with the concept having been backed by an official panel for the very first time, at least an argument has sparked around a topic - which till now was thought about a taboo.