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

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

Five minutes earlier his money was on Australia, however now as the Indian batsman prepares yourself 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 few minutes later his prediction becomes a reality, 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 three decades he's been wagering on cricket matches. We can't reveal his name as what he's doing is illegal in India.

Aside from horse racing, sports betting of any kind is not allowed 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 unlawful sports betting wagering market deserves some $150bn a year. And much of that sports betting cash is directed towards cricket.

With no legal opportunity, punters place bets utilizing their phones by making calls to bookmakers. Gamblers can bet on anything related to the cricket match, from who is winning to the greatest private run scorer.

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

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

And offshore sports betting business are using this loophole to tempt Indians. Even though there are no online wagering operators based out of India, a lot people have actually signed up accounts with offshore firms.

"Legally you can escape [with this], as the law is uncertain for online sports betting," states Mumbai- based attorney HP Ranina.

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

Require legalisation

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

The Justice RM Lodha Commission was established to recommend changes in the performance of India's cricket regulative body, the Board of Control for Cricket in India (BCCI), after the 2013 Indian Premier League wagering scandal emerged.

Two franchises have been banned for two years after some players and group were found guilty of fixing parts of the match at the wish of bookmakers.

The panel also argues that legalised wagering will bring in tax earnings for the exchequer that might total up to $2bn a year.

Even gamblers feel that legalising sports betting is a move in the right instructions.

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

It would also open a big business chance for certified bookmakers and worldwide online wagering business to set up operations in India.

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

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

But numerous likewise 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 legally.

However, there are restrictions.

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

He includes that people who use unaccounted money to place huge bets will never gamble legally.

Approval question

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

"Even though many people are associated with some sort of gaming - it's still a questionable concern 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 tricky that it will take years," says Mr Ranina."That's why, we are negative about this becoming a reality anytime soon."

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