Howzat? The clamour to legalise sports betting 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 needing 17 runs to win versus Australia.

In his two-bedroom house located in central Mumbai, a middle-aged guy 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 made more than 10 calls in the last thirty minutes - not to discuss the match however to keep modifying his bet.

Five minutes previously his money was on Australia, today as the Indian batsman gets ready to face the last over he's changed his mind.

"I believe India is winning, make the change," he tells his bookie on the phone.

And a couple of minutes later on his forecast becomes a reality, 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 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 India. Despite that, prohibited sports betting syndicates thrive in the country.

'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 cash is directed towards cricket.

With no legal avenue, punters put bets using their phones by making calls to bookmakers. Gamblers can wager on anything related to the match, from who is winning to the highest specific run scorer.

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

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

And offshore wagering business are utilizing this loophole to entice Indians. Despite the fact that there are no online wagering operators based out of India, a lot people have actually registered accounts with offshore companies.
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"Legally you can escape [with this], as the law is uncertain for online gaming," states Mumbai- based lawyer HP Ranina.
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But in spite of this, it is "offline gambling", done through call which dominate the marketplace.

Require legalisation

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

The Justice RM Lodha Commission was set up 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 actually been prohibited for two years after some gamers and group authorities were discovered guilty of repairing parts of the match at the behest of bookies.

The panel also argues that legalised wagering will bring in tax incomes for the exchequer that could total up to $2bn a year.
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Even gamblers feel that legalising sports betting wagering is a move in the right direction.

"I do not mind paying some money out my revenues, as long as I can bet openly," states our cricket bettor.
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It would also open a substantial business chance for certified bookies and international online sports betting companies to set up operations in India.
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And it would help limit match repairing in cricket and other sports betting, argue numerous, by assisting make deals involved in gambling more transparent.

"If you work along with wagering companies, you will have an extremely reliable method of stamping out match fixing," 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 sensible to make it appealing enough for them to bet legally.

However, there are constraints.

"Definitely there will be prohibited sports betting because (some) people wouldn't want to leave an audit trail by getting in the white market," states Mr Oborne.

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

Approval question

For sports betting gambling to be legalised, parliamentary approval will be needed to develop a new law, and politically this will be a tough concept to offer.

"Although lots of individuals are included in some sort of gambling - it's still a questionable problem for lots of," states our unnamed punter.

And considered that India has a federal structural - each state will need to also pass a different law to legalise sports betting gambling in their area.

"The process is so long and difficult that it will take years," states Mr Ranina."That's why, we are cynical about this coming true anytime quickly."

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