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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 against Australia.

In his two-bedroom house situated in central Mumbai, a middle-aged guy is enjoying the game, nervously. He's resting on the edge of his grey colour couch with his smart phone glued to his right-hand man.

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

Five minutes previously his cash was on Australia, now as the Indian batsman prepares to deal with the last over he's altered his mind.

"I believe India is winning, make the change," he informs his bookmaker on the phone.

And a few minutes later his prediction comes to life, 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 3 decades he's been wagering on cricket matches. We can't expose 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, illegal sports betting syndicates flourish in the country.

'Black money'

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.

With no legal avenue, punters put bets utilizing their phones by making calls to bookies. Gamblers can bank on anything associated to the cricket match, from who is winning to the highest run scorer.

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

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

And overseas wagering business are using this loophole to entice Indians. Although there are no online wagering operators based out of India, a lot individuals have signed up accounts with offshore companies.

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

But regardless of this, it is "offline gaming", done through telephone call which dominate the market.

Calls for legalisation

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

The Justice RM Lodha Commission was set up to suggest modifications in the performance 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 been prohibited for 2 years after some gamers and group officials were found guilty of repairing parts of the match at the behest of bookmakers.

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

Even bettors feel that legalising sports betting is a relocation in the ideal instructions.

"I do not mind paying some cash out my revenues, as long as I can gamble openly," says our cricket gambler.

It would also open a huge business opportunity for certified bookies and international online wagering companies to establish operations in India.

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

"If you work together with wagering companies, you will have a really reliable method of stamping out match fixing," says George Oborne, who runs a mock sports betting website, India Bet.
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But many also think, that the taxes imposed on the gambler and the bookmaker will need to be affordable to make it attractive enough for them to gamble lawfully.

However, there are limitations.

"Definitely there will be unlawful wagering due to the fact that (some) individuals wouldn't wish to leave an audit trail by going into the white market," states Mr Oborne.

He adds that people who use unaccounted cash to position big bets will never ever gamble legally.

Approval question

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

"Despite the fact that lots of people are involved in some sort of gaming - it's still a questionable problem for numerous," says our unnamed punter.

And provided that India has a federal structural - each state will need to also pass a different law to legalise sports betting in their area.
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"The process is so long and tricky that it will take years," states Mr Ranina."That's why, we are cynical about this coming true anytime soon."

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