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Howzat? The clamour to legalise sports betting in India

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5 February 2016
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By Sameer Hashmi

Mumbai Business reporter

It is the last over of the match, with India requiring 17 runs to win against Australia.

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

He has actually made more than 10 employ the last 30 minutes - not to go over the match but to keep revising his bet.

Five minutes earlier his money was on Australia, today as the Indian batsman prepares 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 couple of minutes later his forecast comes true, as India wins the match in a nail-biting finish.

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

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

Besides horse racing, sports betting of any kind is not allowed India. Despite that, prohibited sports betting distributes thrive in the country.

'Black cash'

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

With no legal avenue, punters put bets using their phones by making calls to bookmakers. Gamblers can bet on anything associated to the cricket match, from who is winning to the greatest individual run scorer.

The majority of these deals involve so-called "black cash", which is money not stated 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 prohibiting web sports betting, there is absolutely nothing comparable here.

And offshore sports betting business are utilizing this loophole to entice Indians. Despite the fact that there are no online wagering operators based out of India, a lot individuals have signed up accounts with overseas firms.

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

But despite this, it is "offline sports betting", done through phone calls which control the market.

Require legalisation

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

The Justice RM Lodha Commission was set up to suggest changes in the functioning of India's cricket regulatory 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 actually been banned for two years after some players and group officials were condemned of fixing parts of the match at the behest of bookmakers.

The panel also argues that legalised sports betting will bring in tax earnings for the exchequer that might amount to $2bn a year.

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

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

It would also open a huge service chance for certified bookies and global online wagering companies to set up operations in India.

And it would assist limit match fixing in cricket and other sports betting, argue lots of, by helping make transactions associated with gambling more transparent.

"If you work together with sports betting companies, you will have a very efficient approach of marking out match fixing," says George Oborne, who runs a mock wagering site, India Bet.

But many likewise believe, that the taxes imposed on the bettor and the bookie will need to be sensible to make it appealing enough for them to bet lawfully.

However, there are restrictions.

"Definitely there will be unlawful wagering since (some) individuals would not want to leave an audit trail by getting in the white market," states Mr Oborne.

He adds that individuals who use unaccounted cash to put huge bets will never bet legally.

Approval question

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

"Although many individuals are associated with some sort of gaming - it's still a questionable concern for numerous," says 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.
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"The process is so long and challenging that it will take years," states Mr Ranina."That's why, we are cynical about this ending up being a reality anytime soon."

Yet with the idea having been backed by a main panel for the first time, at least an argument has ignited around a subject - which previously was considered a taboo.
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