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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 versus Australia.
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In his two-bedroom home situated in main Mumbai, a middle-aged male is enjoying the game, nervously. He's sitting on the edge of his grey colour couch with his smart phone glued to his right-hand man.
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He has made more than 10 calls in the last 30 minutes - not to talk about the match but to keep revising his bet.
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Five minutes earlier his money was on Australia, today as the Indian batsman prepares yourself to face the last over he's altered his mind.

"I believe India is winning, make the change," he tells 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 surface.

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

For more than three years 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 wagering of any kind is not allowed India. Despite that, prohibited sports betting syndicates thrive in the nation.

'Black cash'

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

Without any legal opportunity, punters position bets using their phones by making calls to bookies. Gamblers can wager on anything associated to the cricket match, from who is winning to the greatest private run scorer.

The majority of these deals involve so-called "black cash", which is cash 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 forbiding internet gaming, there is nothing similar here.

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

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

But regardless of this, it is "offline sports betting", done through phone calls which dominate the market.

Calls for legalisation

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

The Justice RM Lodha Commission was set up to recommend modifications in the performance of India's cricket regulative body, the Board of Control for Cricket in India (BCCI), after the 2013 Indian Premier League sports betting scandal came to light.

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

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 is a move in the right direction.

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

It would likewise open a huge organization chance for certified bookmakers and global online sports betting business to establish operations in India.

And it would help restrict match repairing in cricket and other sports betting, argue lots of, by helping make transactions involved in gambling more transparent.

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

But numerous also believe, that the taxes imposed on the bettor and the bookie will have to be affordable to make it appealing enough for them to bet legally.

However, there are limitations.

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

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

Approval concern

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

"Despite the fact that many individuals are included in some sort of gambling - it's still a questionable concern for many," states our unnamed punter.

And provided that India has a federal structural - each state will have to likewise pass a separate law to legalise sports betting gambling in their area.

"The procedure is so long and tricky that it will take years," states Mr Ranina."That's why, we are negative about this ending up being a truth anytime quickly."

Yet with the idea having been endorsed by an official panel for the first time, at least an argument has sparked around a topic - which previously was thought about a taboo.