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Howzat? The clamour to legalise sports betting wagering in India

5 February 2016

By Sameer Hashmi

Mumbai Business reporter

It is the last over of the cricket match, with India requiring 17 runs to win against Australia.

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

He has made more than 10 employ the last thirty minutes - not to go over the match however to keep modifying his bet.
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Five minutes earlier his cash was on Australia, today as the Indian batsman gets ready to face the last over he's altered his mind.

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

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

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

For more than 3 years he's been sports betting on cricket matches. We can't reveal his name as what he's doing is unlawful in India.

Aside from horse racing, sports betting of any kind is not allowed in India. Despite that, prohibited sports betting distributes grow in the nation.

'Black money'

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 money is directed towards cricket.

Without any legal opportunity, punters position 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 greatest run scorer.
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Most of these transactions include so-called "black money", which is money not stated to the taxman.

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

And overseas wagering business are using this loophole to tempt Indians. Although there are no online wagering operators based out of India, a lot people have actually registered accounts with offshore firms.

"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 call which dominate 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, saying 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 regulative body, the Board of Control for Cricket in India (BCCI), after the 2013 Indian Premier League sports betting scandal emerged.
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Two franchises have actually been prohibited for 2 years after some gamers and team authorities were discovered guilty of fixing parts of the match at the wish of bookmakers.

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

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

"I do not mind paying some money out my profits, as long as I can bet publicly," says our cricket gambler.

It would also open a huge business opportunity for licensed bookies and international online wagering companies to establish operations in India.

And it would assist limit match repairing in cricket and other sports betting, argue many, by assisting make deals associated with sports betting more transparent.

"If you work along with sports betting companies, you will have a really effective approach of marking out match repairing," states George Oborne, who runs a mock sports betting website, India Bet.

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

However, there are restrictions.

"Definitely there will be unlawful wagering due to the fact that (some) individuals would not wish to leave an audit trail by getting in the white market," says Mr Oborne.

He includes that people who utilize unaccounted money to position big bets will never bet legally.

Approval concern

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

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

And given that India has a federal structural - each state will need to likewise pass a different law to legalise sports betting in their area.

"The process is so long and difficult that it will take years," states Mr Ranina."That's why, we are cynical about this coming true anytime quickly."

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