Howzat? The clamour to legalise sports betting in India

Published

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 needing 17 go to win against Australia.

In his two-bedroom home situated in central Mumbai, a middle-aged guy is watching the game, nervously. He's sitting on the edge of his grey colour couch with his smart phone glued to his best hand.

He has made more than 10 employ the last 30 minutes - not to go over the match but to keep modifying 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 believe India is winning, make the modification," he informs his bookmaker on the phone.

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

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

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

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

'Black cash'

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

With no legal opportunity, punters put bets using their phones by making calls to bookmakers. Gamblers can bet on anything related 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 stated to the taxman.

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

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

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

But regardless of this, it is "offline gambling", done through telephone call 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 nation's preferred sport.

The Justice RM Lodha Commission was set up to recommend modifications 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 emerged.

Two franchises have actually been prohibited for two years after some gamers and group officials were condemned of repairing parts of the match at the wish of bookies.

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

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

"I don't mind paying some money out my profits, as long as I can bet publicly," states our cricket bettor.

It would also open a huge service opportunity for certified bookmakers and global online sports betting companies to establish operations in India.

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

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

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

However, there are limitations.

"Definitely there will be unlawful wagering since (some) individuals would not wish to leave an audit path by getting in the white market," states Mr Oborne.

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

Approval question

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

"Despite the fact that many individuals are included in some sort of gambling - it's still a controversial concern for lots of," states our unnamed punter.

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

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

Yet with the concept having actually been backed by a main panel for the first time, at least a debate has sparked around a subject - which previously was considered a taboo.