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

In his two-bedroom house situated in main 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.

He has made more than 10 calls in the last thirty minutes - not to discuss the match however to keep modifying his bet.

Five minutes earlier his cash was on Australia, however now as the Indian batsman prepares to face the last over he's altered his mind.

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

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

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

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

Other than horse racing, sports betting wagering of any kind is not enabled in India. Despite that, unlawful sports betting distributes prosper in the nation.

'Black cash'

According to the Doha-based International Centre for sports betting Security, India's prohibited sports betting wagering market is worth 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 wager on anything associated to the cricket match, from who is winning to the highest specific run scorer.

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

The 1867 Public Gambling Act bars any kind of gambling in India, but unlike in the US which has a law forbiding web sports betting, there is absolutely nothing similar here.
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And overseas wagering companies are using this loophole to entice Indians. Despite the fact that there are no online wagering operators based out of India, a lot people have actually signed up accounts with offshore companies.

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

But despite this, it is "offline gambling", done through telephone call which dominate the marketplace.

Calls for legalisation

The clamour to legalise sports betting in cricket has grown after a panel appointed by India's Supreme Court proposed the concept, stating it would help clamp down on corruption in the nation'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 actually been prohibited for two years after some gamers and group officials were condemned of fixing parts of the match at the behest of bookmakers.

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

Even gamblers feel that legalising sports betting wagering is a move in the ideal direction.

"I do not mind paying some money out my earnings, as long as I can bet openly," says our cricket bettor.

It would also open a big business opportunity for licensed bookmakers and worldwide online wagering companies to establish operations in India.

And it would assist limit match fixing in cricket and other sports betting, argue lots of, by helping make deals included in sports betting more transparent.

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

But numerous also think, that the taxes levied on the bettor and the bookmaker will need to be affordable to make it attractive enough for them to bet legally.

However, there are constraints.

"Definitely there will be unlawful wagering since (some) individuals would not want to leave an audit path by getting in the white market," states Mr Oborne.

He adds that people who use unaccounted money to place huge bets will never gamble lawfully.

Approval concern

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

"Even though many individuals are associated with some sort of gaming - it's still a controversial issue for many," says our unnamed punter.

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

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

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