Howzat? The clamour to legalise sports betting wagering 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 requiring 17 go to win versus Australia.

In his two-bedroom home situated in central Mumbai, a middle-aged guy is enjoying the video game, nervously. He's sitting on the edge of his grey colour couch with his cellphone glued to his right-hand man.

He has made more than 10 calls in the last 30 minutes - not to discuss the match however to keep modifying his bet.

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

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

And a couple of minutes later on 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 3 decades he's been wagering on cricket matches. We can't expose his name as what he's doing is unlawful in India.

Aside from horse racing, sports betting wagering of any kind is not permitted in India. Despite that, unlawful wagering syndicates flourish in the country.

'Black cash'

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

With no legal avenue, punters position bets utilizing their phones by making calls to bookmakers. Gamblers can bet on anything associated to the cricket match, from who is winning to the greatest private run scorer.

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

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

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

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

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

Require legalisation

The clamour to legalise wagering in cricket has actually grown after a panel appointed by India's Supreme Court proposed the idea, stating it would help secure down on corruption in the country's preferred sport.

The Justice RM Lodha Commission was set up 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 two years after some players and team officials were found guilty of repairing parts of the match at the wish of bookmakers.

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

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

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

It would also open a big service opportunity for licensed bookies and global online sports betting companies to establish operations in India.

And it would help restrict match repairing in cricket and other sports betting, argue numerous, by assisting make transactions included in gambling more transparent.

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

But many also think, that the taxes levied on the gambler and the bookmaker will have to be affordable to make it attractive enough for them to bet lawfully.

However, there are restrictions.

"Definitely there will be illegal wagering because (some) individuals wouldn't wish to leave an audit trail by entering the white market," says Mr Oborne.

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

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 hard idea to offer.

"Although numerous individuals are associated with some sort of gaming - it's still a controversial issue for many," says our unnamed punter.

And considered that India has a federal structural - each state will have to likewise pass a different law to legalise sports betting in their territory.

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

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