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.

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

He has made more than 10 hire the last thirty minutes - not to talk about the match but to keep revising his bet.

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 modification," he tells his bookie on the phone.

And a few minutes later 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 sports betting 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 permitted in India. Despite that, illegal wagering syndicates thrive 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 money is directed towards cricket.

Without any legal opportunity, punters place bets using their phones by making calls to bookmakers. Gamblers can bank on anything associated to the cricket match, from who is winning to the highest private run scorer.

The majority of these transactions include so-called "black cash", which is cash not declared to the taxman.

The 1867 Public Gambling Act bars any kind of gaming in India, but unlike in the US which has a law forbiding internet sports betting, there is nothing similar here.

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

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

But despite this, it is "offline sports betting", done through phone calls which dominate 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 nation's favourite sport.

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

Two franchises have been prohibited for two years after some players and team authorities were condemned of fixing parts of the match at the wish of bookmakers.

The panel also argues that legalised wagering will generate tax incomes for the exchequer that could amount to $2bn a year.

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

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

It would likewise open a huge service chance for licensed bookies and global online wagering companies to establish operations in India.

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

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

But numerous likewise believe, that the taxes levied on the gambler and the bookmaker will need to be sensible to make it appealing enough for them to gamble lawfully.

However, there are constraints.

"Definitely there will be illegal wagering because (some) individuals wouldn't desire to leave an audit trail by entering the white market," says Mr Oborne.

He includes that individuals who use unaccounted cash to put big bets will never gamble legally.

Approval question

For sports betting gambling to be legalised, parliamentary approval will be required to develop a new law, and politically this will be a difficult concept to sell.

"Despite the fact that lots of people are associated with 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 also 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 coming true anytime soon."

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