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 requiring 17 runs to win versus Australia.

In his two-bedroom home situated in central Mumbai, a middle-aged male is viewing the video game, nervously. He's resting on the edge of his grey colour couch with his smart phone glued to his right-hand man.

He has actually made more than 10 contact the last thirty 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 prepared to face the last over he's changed his mind.

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

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

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

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

Aside from horse racing, sports betting of any kind is not allowed in India. Despite that, illegal sports betting distributes thrive in the nation.

'Black money'

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

Without any legal avenue, punters place 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 specific run scorer.

Most of these transactions include so-called "black cash", which is money not declared to the taxman.

The 1867 Public Gambling Act bars any type of gambling in India, but unlike in the US which has a law forbiding internet sports betting, there is absolutely nothing comparable here.

And overseas sports betting companies are using this loophole to draw Indians. Although there are no online sports betting operators based out of India, a lot individuals have signed up accounts with overseas companies.

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

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

Require legalisation

The clamour to legalise sports betting in cricket has actually grown after a panel appointed by India's Supreme Court proposed the concept, stating it would help secure 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 wagering scandal came to light.

Two franchises have been banned for 2 years after some players and team officials were condemned of fixing parts of the match at the request of bookmakers.

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

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

"I don't mind paying some cash out my profits, as long as I can gamble publicly," says our cricket gambler.

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

And it would help restrict match repairing in cricket and other sports betting, argue many, by assisting make transactions included in gambling more transparent.

"If you work alongside sports betting business, you will have a very efficient method of marking out match fixing," states George Oborne, who runs a mock sports betting site, India Bet.

But many likewise believe, that the taxes imposed on the bettor and the bookmaker will need to be affordable to make it appealing enough for them to gamble legally.

However, there are limitations.

"Definitely there will be prohibited wagering since (some) individuals wouldn't want to leave an audit path by entering the white market," says Mr Oborne.

He includes that individuals who use unaccounted money to position big bets will never bet lawfully.

Approval concern

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

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

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

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

Yet with the idea having been endorsed by an official panel for the very first time, a minimum of a dispute has actually ignited around a topic - which previously was thought about a taboo.