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

In his two-bedroom home located in main Mumbai, a middle-aged man is viewing the game, nervously. He's sitting on the edge of his grey colour couch with his mobile phone glued to his right-hand man.

He has made more than 10 calls in the last 30 minutes - not to talk about the match but to keep revising his bet.

Five minutes earlier his cash 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 change," he tells his bookmaker on the phone.

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

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

For more than 3 decades he's been banking on cricket matches. We can't expose his name as what he's doing is unlawful in India.

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

'Black cash'

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

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

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

The 1867 Public Gambling Act bars any type of gaming in India, however unlike in the US which has a law prohibiting internet gambling, there is nothing comparable here.

And overseas sports betting companies are using this loophole to lure Indians. Even though there are no online wagering operators based out of India, a lot individuals have registered accounts with offshore companies.

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

But regardless of this, it is "offline gambling", done through telephone call which control the marketplace.

Calls for legalisation

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

The Justice RM Lodha Commission was established to suggest changes in the functioning 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.

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

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

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

"I don't mind paying some money out my revenues, as long as I can bet openly," states our cricket gambler.

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

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

"If you work alongside wagering business, you will have a very effective approach of stamping out match repairing," states George Oborne, who runs a mock sports betting website, India Bet.

But lots of also think, that the taxes levied on the bettor and the bookie will need to be reasonable to make it attractive enough for them to gamble lawfully.

However, there are constraints.

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

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

Approval question

For sports betting to be legalised, parliamentary approval will be needed to create a brand-new law, and politically this will be a tough idea to sell.

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

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

"The procedure is so long and challenging that it will take years," says Mr Ranina."That's why, we are cynical about this coming true anytime soon."

Yet with the idea having been backed by an official panel for the very first time, at least a debate has actually ignited around a topic - which previously was thought about a taboo.