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Howzat? The clamour to legalise sports betting 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 needing 17 runs to win against Australia.

In his two-bedroom house situated in central Mumbai, a middle-aged male is enjoying 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 made more than 10 contact the last 30 minutes - not to talk about the match but to keep modifying his bet.

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

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

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

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

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

'Black money'
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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 gambling money is directed towards cricket.

With no legal opportunity, punters put 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 transactions involve so-called "black cash", which is money not declared to the taxman.

The 1867 Public Gambling Act bars any sort of gambling in India, but unlike in the US which has a law forbiding internet gambling, there is nothing comparable here.

And offshore sports betting business are using this loophole to entice Indians. Despite the fact that there are no online sports betting operators based out of India, a lot individuals have actually registered accounts with offshore companies.

"Legally you can escape [with this], as the law is uncertain for online gaming," states Mumbai- based legal representative HP Ranina.

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

Calls for legalisation

The clamour to legalise wagering in cricket has actually grown after a panel appointed 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 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 wagering scandal emerged.

Two franchises have been banned for two years after some and group authorities were condemned of repairing parts of the match at the wish of bookies.

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

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

"I don't mind paying some money out my revenues, as long as I can gamble publicly," says our cricket bettor.

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

And it would help limit match repairing in cricket and other sports betting, argue numerous, by helping make transactions associated with gambling more transparent.

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

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

However, there are restrictions.

"Definitely there will be unlawful wagering due to the fact that (some) individuals wouldn't wish to leave an audit path by going into the white market," states Mr Oborne.

He adds that people who use unaccounted cash to put huge bets will never ever bet legally.

Approval question

For sports betting gambling to be legalised, parliamentary approval will be needed to produce a brand-new law, and politically this will be a hard idea to offer.

"Although many individuals are involved in some sort of gaming - it's still a questionable problem for lots of," states our unnamed punter.

And given that India has a federal structural - each state will need to also pass a separate law to legalise sports betting gambling in their area.
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"The process is so long and challenging that it will take years," says Mr Ranina."That's why, we are negative about this coming true anytime quickly."

Yet with the idea having been endorsed by an official panel for the very first time, a minimum of a debate has actually fired up around a topic - which till now was considered a taboo.