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 reporter

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

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

He has actually made more than 10 calls in the last 30 minutes - not to go over the match however to keep modifying his bet.

Five minutes previously his cash was on Australia, today as the Indian batsman prepares yourself to face the last over he's changed his mind.

"I think India is winning, make the modification," 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 surface.

"I have 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 unlawful in India.

Aside from horse racing, sports betting wagering of any kind is not enabled in India. Despite that, prohibited wagering syndicates thrive in the country.

'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 cash is directed towards cricket.

Without any legal opportunity, 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.
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Most of these deals include so-called "black cash", which is money 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 gambling, there is absolutely nothing similar here.

And overseas sports betting companies are utilizing this loophole to lure 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 escape [with this], as the law is uncertain for online gaming," states Mumbai- based legal representative HP Ranina.

But despite this, it is "offline gambling", done through phone calls which control the marketplace.

Require legalisation

The clamour to legalise wagering in cricket has actually grown after a panel selected by India's Supreme Court proposed the concept, saying it would help secure down on corruption in the nation's preferred sport.

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

Two franchises have been prohibited for 2 years after some gamers and team authorities were condemned of fixing parts of the match at the wish of bookmakers.

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

Even gamblers feel that legalising sports betting wagering is a relocation in the ideal direction.

"I do not mind paying some money out my earnings, as long as I can gamble openly," states our cricket bettor.

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

And it would help limit match repairing in cricket and other sports betting, argue numerous, by helping make transactions included in sports betting more transparent.

"If you work along with sports betting companies, you will have a very reliable approach of marking out match repairing," states George Oborne, who runs a mock wagering website, India Bet.

But numerous also believe, that the taxes levied on the bettor and the bookmaker will need to be affordable to make it attractive enough for them to bet lawfully.

However, there are constraints.

"Definitely there will be prohibited sports betting because (some) people would not wish to leave an audit path by going into the white market," states Mr Oborne.

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

Approval question

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

"Despite the fact that numerous individuals are involved in some sort of sports betting - it's still a controversial concern for numerous," states 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 in their area.
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"The process is so long and challenging that it will take years," says Mr Ranina."That's why, we are negative about this ending up being a truth anytime quickly."

Yet with the concept having actually been endorsed by an official panel for the very first time, at least an argument has actually ignited around a topic - which until now was considered a taboo.
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