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 requiring 17 runs to win against Australia.

In his two-bedroom home located in main Mumbai, a middle-aged guy is enjoying the video game, nervously. He's sitting on the edge of his grey colour sofa with his mobile phone glued to his ideal hand.

He has made more than 10 employ the last 30 minutes - not to talk about the match but to keep modifying his bet.

Five minutes previously his cash was on Australia, today as the Indian batsman gets ready to deal with the last over he's altered his mind.

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

And a couple of minutes later on his prediction comes true, as India wins the match in a nail-biting finish.

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

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

Other than horse racing, sports betting of any kind is not allowed India. Despite that, prohibited sports betting syndicates flourish 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 gambling cash is directed towards cricket.

Without any legal avenue, punters position bets utilizing their phones by making calls to bookmakers. Gamblers can bank on anything associated to the cricket match, from who is winning to the greatest specific 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 sports betting in India, however unlike in the US which has a law restricting internet gaming, there is absolutely nothing similar here.

And offshore wagering companies are using this loophole to tempt 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 escape [with this], as the law is uncertain for online sports betting," states Mumbai- based legal representative HP Ranina.

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

Require legalisation

The clamour to legalise wagering in cricket has actually grown after a panel designated by India's Supreme Court proposed the idea, saying it would assist clamp down on corruption in the nation's favourite sport.

The Justice RM Lodha Commission was set up to suggest changes 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 emerged.

Two franchises have actually been prohibited for 2 years after some gamers and group 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 incomes for the exchequer that might total up to $2bn a year.

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

"I don't mind paying some money out my profits, as long as I can gamble openly," states our cricket gambler.

It would also open a huge service chance for licensed bookmakers and global online sports betting companies to establish operations in India.

And it would assist restrict match repairing in cricket and other sports betting, argue many, by helping make transactions involved in sports betting more transparent.

"If you work alongside wagering business, you will have an extremely efficient method of stamping out match repairing," says George Oborne, who runs a mock wagering website, India Bet.

But many also think, that the taxes imposed on the gambler and the bookie will need to be affordable to make it appealing enough for them to bet lawfully.

However, there are constraints.

"Definitely there will be prohibited wagering due to the fact that (some) individuals wouldn't want to leave an audit trail by entering the white market," states Mr Oborne.

He adds that people who use unaccounted money to put huge bets will never ever gamble legally.

Approval concern

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

"Although lots of people are associated with some sort of gambling - it's still a questionable concern for numerous," says our unnamed punter.

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

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

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