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Howzat? The clamour to legalise sports betting in India
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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 requiring 17 go to win against Australia.

In his two-bedroom home situated in main Mumbai, a middle-aged male is viewing the video game, nervously. He's resting on the edge of his grey colour sofa with his cellphone 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 revising his bet.

Five minutes earlier his money was on Australia, and now as the Indian batsman gets all set to face the last over he's changed his mind.

"I think India is winning, make the change," he informs his bookie on the phone.

And a couple of minutes later his forecast comes to life, 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 three decades 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 wagering of any kind is not allowed in India. Despite that, prohibited sports betting syndicates thrive in the country.

'Black money'

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

Without any legal avenue, punters put bets utilizing their phones by making calls to bookmakers. Gamblers can wager on anything related to the cricket match, from who is winning to the greatest specific run scorer.
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The majority of these transactions include so-called "black money", which is cash not stated to the taxman.

The 1867 Public Gambling Act bars any type of sports betting in India, however unlike in the US which has a law restricting web gaming, there is nothing similar here.

And offshore wagering companies are using this loophole to entice Indians. Even though there are no online sports betting operators based out of India, a lot people have signed up accounts with overseas firms.

"Legally you can escape [with this], as the law is unclear for online gambling," states Mumbai- based lawyer HP Ranina.

But despite this, it is "offline sports betting", done through call 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, saying it would assist clamp down on corruption in the nation'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 sports betting scandal came to light.

Two franchises have actually been prohibited for two years after some gamers and team authorities were condemned of repairing parts of the match at the behest of bookmakers.

The panel likewise argues that legalised sports betting will bring in tax incomes for the exchequer that could amount to $2bn a year.

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

"I do not mind paying some cash out my revenues, as long as I can gamble publicly," says our cricket gambler.

It would also open a huge service opportunity for certified bookies and global online sports betting business to set up operations in India.
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And it would help restrict match fixing in cricket and other sports betting, argue many, by assisting make transactions associated with gambling more transparent.

"If you work along with sports betting business, you will have a really reliable approach of stamping out match fixing," states George Oborne, who runs a mock wagering site, India Bet.

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

However, there are restrictions.

"Definitely there will be unlawful wagering since (some) people would not wish to leave an audit path by going into the white market," says Mr Oborne.

He includes that people who use unaccounted cash to position huge bets will never bet legally.

Approval concern

For sports betting to be legalised, parliamentary approval will be required to produce a brand-new law, and politically this will be a difficult concept to sell.

"Despite the fact that numerous people are included in some sort of sports betting - it's still a questionable issue for many," says our unnamed punter.

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

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