Howzat? The clamour to legalise sports betting in India

5 February 2016

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 situated in main Mumbai, a middle-aged man is watching the video game, nervously. He's resting on the edge of his grey colour couch with his mobile phone glued to his right-hand man.

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

Five minutes earlier his money 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 modification," he tells his bookmaker on the phone.

And a few minutes later his prediction becomes a reality, as India wins the match in a nail-biting surface.
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"I have made $200 today," he says with a childish glee.

For more than 3 decades he's been sports betting on cricket matches. We can't reveal his name as what he's doing is prohibited in India.

Other than horse racing, sports betting wagering of any kind is not allowed India. Despite that, prohibited sports betting syndicates thrive in the country.

'Black cash'

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

With no legal opportunity, punters put bets utilizing their phones by making calls to bookmakers. Gamblers can bank on anything related to the cricket match, from who is winning to the greatest specific run scorer.

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

The 1867 Public Gambling Act bars any sort of gambling in India, however unlike in the US which has a law prohibiting internet sports betting, there is absolutely nothing comparable here.
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And overseas wagering business are using this loophole to draw Indians. Although there are no online sports betting operators based out of India, a lot individuals have registered accounts with overseas firms.

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

But despite this, it is "offline gaming", done through call 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 assist secure down on corruption in the nation's favourite sport.

The Justice RM Lodha Commission was set up to suggest modifications in the performance of India's cricket regulative 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 2 years after some players and group officials were found guilty of repairing parts of the match at the request of bookmakers.

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

Even bettors feel that legalising sports betting is a move in the best instructions.

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

It would likewise open a substantial organization chance for certified bookmakers and international online wagering companies to establish operations in India.

And it would match fixing in cricket and other sports betting, argue numerous, by assisting make deals involved in gambling more transparent.

"If you work alongside sports betting business, you will have an extremely reliable method of stamping out match fixing," says George Oborne, who runs a mock wagering website, India Bet.

But many also think, that the taxes levied on the gambler and the bookmaker will need to be sensible to make it appealing enough for them to bet legally.

However, there are restrictions.

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

He adds that people who use unaccounted cash to place huge bets will never ever gamble legally.
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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 hard concept to offer.

"Although many individuals are involved in some sort of sports betting - it's still a controversial problem for lots of," states our unnamed punter.

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

"The process is so long and challenging that it will take years," states Mr Ranina."That's why, we are cynical about this becoming a truth anytime soon."

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