Howzat? The clamour to legalise sports betting wagering in India

Published

5 February 2016

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By Sameer Hashmi

Mumbai Business reporter

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

In his two-bedroom home situated in main Mumbai, a middle-aged guy is seeing the game, nervously. He's resting on the edge of his grey colour couch with his cellphone glued to his right hand.

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

Five minutes previously his cash was on Australia, today as the Indian batsman prepares 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 on his forecast comes true, as India wins the match in a nail-biting surface.

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

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

Aside from horse racing, sports betting of any kind is not permitted in India. Despite that, unlawful wagering syndicates prosper in the country.

'Black money'

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

With no legal opportunity, punters put bets using their phones by making calls to bookies. Gamblers can wager on anything associated to the cricket match, from who is winning to the greatest private run scorer.

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

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

And offshore sports betting business are utilizing this loophole to draw Indians. Despite the fact that there are no online sports betting operators based out of India, a lot people have actually registered accounts with offshore firms.

"Legally you can escape [with this], as the law is unclear for online gambling," states Mumbai- based legal representative HP Ranina.

But despite this, it is "offline sports betting", done through telephone call which dominate the market.

Require legalisation

The clamour to legalise wagering in cricket has grown after a panel appointed by India's Supreme Court proposed the concept, stating it would assist clamp down on corruption in the nation's favourite sport.

The Justice RM Lodha Commission was set up to recommend changes in the performance of India's cricket regulative body, the Board of Control for in India (BCCI), after the 2013 Indian Premier League wagering scandal came to light.

Two franchises have actually been banned for two years after some gamers and team officials were discovered guilty of repairing parts of the match at the behest of bookmakers.

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

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

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

It would likewise open a big service chance for licensed bookies and international online sports betting business to establish operations in India.

And it would help restrict match fixing in cricket and other sports betting, argue many, by assisting make transactions associated with sports betting more transparent.

"If you work along with sports betting business, you will have an extremely reliable approach of stamping out match fixing," states George Oborne, who runs a mock sports betting site, India Bet.
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But many also think, that the taxes imposed on the gambler and the bookie will need to be reasonable to make it attractive enough for them to bet legally.

However, there are limitations.

"Definitely there will be illegal sports betting since (some) people would not wish to leave an audit path by entering the white market," says Mr Oborne.

He includes that people who use unaccounted cash to place big bets will never ever gamble lawfully.
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Approval question

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

"Although lots of people are associated with some sort of gaming - it's still a questionable problem for many," states our unnamed punter.

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

"The procedure is so long and difficult that it will take years," states Mr Ranina."That's why, we are negative 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 an argument has actually ignited around a subject - which previously was considered a taboo.
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