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Howzat? The clamour to legalise sports betting wagering in India
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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 home located in central Mumbai, a middle-aged man is enjoying the video game, nervously. He's resting on the edge of his grey colour couch with his smart phone glued to his right hand.

He has made more than 10 employ the last thirty minutes - not to discuss the match but to keep revising his bet.

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

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

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

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

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

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

'Black cash'

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.

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

Most of these transactions involve so-called "black cash", which is money not declared 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 web sports betting, there is nothing similar here.

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

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

But regardless of this, it is "offline sports betting", done through telephone call which control the market.

Calls for legalisation

The clamour to legalise wagering in cricket has grown after a panel appointed by India's Supreme Court proposed the concept, saying it would help clamp down on corruption in the nation's preferred sport.

The Justice RM Lodha Commission was established to suggest modifications in the functioning of India's cricket regulative body, the Board of Control for Cricket in India (BCCI), after the 2013 Indian Premier League wagering scandal came to light.

Two franchises have actually been banned for 2 years after some gamers and team authorities were condemned of repairing parts of the match at the wish of bookies.

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

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

It would likewise open a huge company opportunity for licensed bookmakers and international online sports betting business to set up operations in India.

And it would help limit match repairing in cricket and other sports betting, argue many, by helping make transactions associated with gambling more transparent.

"If you work alongside wagering companies, you will have a really effective approach of stamping out match fixing," states George Oborne, who runs a mock wagering website, India Bet.

But many likewise think, that the taxes imposed on the bettor and the bookie will need to be reasonable to make it attractive enough for them to gamble legally.

However, there are constraints.

"Definitely there will be illegal sports betting since (some) individuals wouldn't desire to leave an audit trail by entering the white market," says Mr Oborne.

He includes that individuals who utilize unaccounted money to place huge bets will never gamble lawfully.

Approval concern

For sports betting to be legalised, parliamentary approval will be required to develop a new law, and politically this will be a hard concept to sell.

"Despite the fact that many individuals are associated with some sort of gambling - it's still a controversial issue for numerous," states 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 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 cynical about this coming true anytime quickly."

Yet with the idea having been endorsed by a main panel for the very first time, a minimum of an argument has actually fired up around a topic - which until now was thought about a taboo.
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