Howzat? The clamour to legalise sports betting 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 main Mumbai, a middle-aged man is seeing the game, nervously. He's sitting on the edge of his grey colour sofa with his mobile phone glued to his right-hand man.

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

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

"I think India is winning, make the modification," he tells his bookmaker on the phone.

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

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

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

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

'Black money'

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

With no legal opportunity, punters put bets using their phones by making calls to bookmakers. Gamblers can bank on anything related to the cricket match, from who is winning to the greatest individual run scorer.

The majority of these deals involve so-called "black cash", which is money not stated to the taxman.

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

And overseas wagering companies are utilizing 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 overseas firms.

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

But in spite of this, it is "offline gaming", done through telephone call which control the market.

Require legalisation

The clamour to legalise wagering in cricket has grown after a panel selected by India's Supreme Court proposed the idea, saying it would assist clamp down on corruption in the country's favourite sport.

The Justice RM Lodha Commission was established to suggest changes in the performance of India's cricket regulative 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 condemned of repairing parts of the match at the request of bookmakers.

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

Even gamblers feel that legalising sports betting is a move in the right instructions.

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

It would also open a big service opportunity for licensed bookies and international online wagering companies to set up operations in India.

And it would help limit match repairing in cricket and other sports betting, argue many, by helping make deals included in sports betting more transparent.

"If you work along with sports betting business, you will have a very reliable method of stamping out match fixing," says George Oborne, who runs a mock sports betting website, India Bet.

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

However, there are restrictions.

"Definitely there will be unlawful sports betting due to the fact that (some) individuals would not want to leave an audit path by going into the white market," states Mr Oborne.

He includes that individuals who use unaccounted cash to position big bets will never gamble lawfully.

Approval concern

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 people are associated with some sort of gaming - it's still a questionable concern for many," says our unnamed punter.

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

"The process is so long and tricky that it will take years," says Mr Ranina."That's why, we are cynical about this becoming a reality anytime quickly."

Yet with the concept having actually been backed by an official panel for the first time, at least a debate has actually ignited around a subject - which till now was considered a taboo.