Howzat? The clamour to legalise sports betting wagering 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 house located in main Mumbai, a middle-aged guy is enjoying the game, nervously. He's sitting on the edge of his grey colour sofa with his mobile phone glued to his right hand.

He has actually made more than 10 calls in the last 30 minutes - not to discuss the match however to keep revising his bet.

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

"I think India is winning, make the modification," he tells his bookmaker on the phone.

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

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

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

Other than horse racing, sports betting of any kind is not allowed in India. Despite that, illegal sports betting syndicates flourish in the nation.

'Black money'

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

Without any legal opportunity, punters position bets using their phones by making calls to bookmakers. Gamblers can wager on anything related to the cricket match, from who is winning to the highest individual run scorer.

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

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

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

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

But in spite of this, it is "offline sports betting", done through phone calls which control the marketplace.

Calls for legalisation

The clamour to legalise sports betting in cricket has actually grown after a panel appointed by India's Supreme Court proposed the idea, stating it would help secure down on corruption in the country's favourite 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 team authorities were condemned of repairing parts of the match at the request of bookies.

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

Even gamblers feel that legalising sports betting is a relocation in the best direction.

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

It would likewise open a substantial service opportunity for licensed bookies and worldwide online sports betting business to establish operations in India.

And it would help limit match fixing in cricket and other sports betting, argue many, by assisting make transactions involved in sports betting more transparent.

"If you work together with wagering business, you will have a very efficient method of marking out match repairing," says George Oborne, who runs a mock sports betting website, India Bet.

But numerous likewise think, that the taxes levied on the bettor and the bookmaker will have to be affordable to make it appealing enough for them to gamble lawfully.

However, there are limitations.

"Definitely there will be unlawful wagering since (some) people would not wish to leave an audit trail by entering the white market," states Mr Oborne.

He includes that individuals who utilize unaccounted cash to position big bets will never ever bet legally.

Approval concern

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

"Although many individuals are involved in some sort of gambling - it's still a controversial concern for lots of," states our unnamed punter.

And considered that India has a federal structural - each state will need to likewise pass a different law to legalise sports betting gambling in their area.

"The process is so long and challenging that it will take years," says Mr Ranina."That's why, we are cynical about this ending up being a truth anytime quickly."

Yet with the concept having actually been backed by a main panel for the very first time, a minimum of a debate has actually sparked around a topic - which up until now was considered a taboo.