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 go to win against Australia.

In his two-bedroom home located in main 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 best hand.

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

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

"I think India is winning, make the change," he tells his bookmaker on the phone.

And a couple of minutes later on his forecast comes to life, as India wins the match in a nail-biting surface.

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

For more than three years he's been sports betting 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 India. Despite that, unlawful sports betting syndicates thrive in the country.

'Black cash'

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

With no legal opportunity, 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 private run scorer.

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

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

And overseas wagering companies are using this loophole to lure Indians. Even though there are no online wagering operators based out of India, a lot people have actually registered accounts with overseas companies.

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

But despite this, it is "offline gaming", done through which control the marketplace.

Calls for legalisation

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

The Justice RM Lodha Commission was established 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 emerged.

Two franchises have been banned for 2 years after some gamers and group officials were condemned of fixing parts of the match at the wish of bookmakers.

The panel likewise argues that legalised wagering will generate tax revenues for the exchequer that could total up to $2bn a year.

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

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

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

And it would help limit match fixing in cricket and other sports betting, argue many, by helping make deals involved in sports betting more transparent.

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

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

However, there are limitations.

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

He includes that people who use unaccounted cash to put big bets will never ever bet lawfully.

Approval concern

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

"Despite the fact that many individuals are involved in some sort of gambling - it's still a questionable concern for numerous," states our unnamed punter.

And given that India has a federal structural - each state will have to also pass a different law to legalise sports betting gambling in their area.
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"The procedure is so long and challenging 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 been endorsed by an official panel for the very first time, a minimum of a debate has fired up around a topic - which up until now was considered a taboo.
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