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 needing 17 go to win versus Australia.

In his two-bedroom house situated in central Mumbai, a middle-aged male is viewing the game, nervously. He's sitting on the edge of his grey colour couch with his mobile phone glued to his ideal hand.

He has made more than 10 employ the last thirty minutes - not to go over the match however to keep modifying his bet.

Five minutes previously his money was on Australia, now as the Indian batsman gets ready to face the last over he's altered his mind.

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

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

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

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

Other than horse racing, sports betting of any kind is not permitted in India. Despite that, unlawful wagering syndicates grow in the country.

'Black cash'

According to the Doha-based International Centre for sports betting Security, India's illegal sports betting wagering market is worth some $150bn a year. And much of that gambling money is directed towards cricket.
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Without any legal opportunity, punters place bets using their phones by making calls to bookmakers. Gamblers can wager on anything associated to the cricket match, from who is winning to the greatest individual run scorer.

The majority of these deals include so-called "black money", which is cash not declared to the taxman.
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The 1867 Public Gambling Act bars any kind of gambling in India, however unlike in the US which has a law restricting internet sports betting, there is absolutely nothing similar here.

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

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

But in spite of this, it is "offline gambling", done through phone calls which dominate the marketplace.

Require 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 set up to recommend 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 sports betting scandal came to light.

Two franchises have been banned for two years after some players and group officials were condemned of fixing parts of the match at the wish of bookmakers.

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

Even bettors feel that legalising sports betting wagering is a move in the right direction.
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"I don't mind paying some money out my profits, as long as I can gamble openly," says our cricket bettor.

It would also open a huge company opportunity for certified bookies and worldwide online sports betting business to establish operations in India.

And it would help restrict match repairing in cricket and other sports betting, argue lots of, by helping make transactions associated with sports betting more transparent.

"If you work alongside wagering companies, you will have an extremely efficient technique of stamping out match repairing," states George Oborne, who runs a mock sports betting site, India Bet.

But many also think, that the taxes imposed on the bettor and the bookmaker will have to be reasonable to make it attractive enough for them to bet legally.

However, there are restrictions.

"Definitely there will be prohibited wagering since (some) people would not desire to leave an audit path by entering the white market," states Mr Oborne.

He adds that people who use unaccounted cash to position big bets will never ever bet lawfully.

Approval concern

For sports betting to be legalised, parliamentary approval will be needed to produce a new law, and politically this will be a hard to sell.

"Despite the fact that many individuals are associated with some sort of gambling - it's still a controversial issue for numerous," says our unnamed punter.

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

Yet with the idea having actually been backed by a main panel for the very first time, at least an argument has fired up around a subject - which previously was considered a taboo.