Howzat? The clamour to legalise sports betting wagering in India

5 February 2016

By Sameer Hashmi

Mumbai Business press reporter
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It is the last over of the cricket match, with India requiring 17 runs to win versus Australia.

In his two-bedroom home located in central Mumbai, a middle-aged man is enjoying the video game, nervously. He's sitting on the edge of his grey colour couch with his cellphone glued to his right-hand man.

He has made more than 10 contact the last 30 minutes - not to discuss the match however to keep modifying his bet.

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

"I believe India is winning, make the modification," he informs his bookie on the phone.

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

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

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

Besides horse racing, sports betting of any kind is not allowed India. Despite that, unlawful wagering distributes thrive in the country.

'Black cash'

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 money is directed towards cricket.

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

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

The 1867 Public Gambling Act bars any type of gaming in India, but unlike in the US which has a law restricting web gambling, there is nothing similar here.

And overseas sports betting companies are using this loophole to tempt Indians. Even though there are no online wagering operators based out of India, a lot people have signed up accounts with offshore companies.

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

But in spite of this, it is "offline gambling", done through telephone call which control the marketplace.

Require legalisation

The clamour to legalise wagering in cricket has actually grown after a panel appointed by India's Supreme Court proposed the idea, stating it would help clamp down on corruption in the country's preferred sport.

The Justice RM Lodha Commission was established to suggest 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 wagering scandal came to light.

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

The panel also argues that legalised sports betting will generate tax revenues for the exchequer that could amount to $2bn a year.
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Even bettors feel that legalising sports betting is a relocation in the ideal instructions.

"I don't mind paying some money out my revenues, as long as I can gamble openly," states our cricket bettor.
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It would likewise open a substantial organization chance for licensed bookies and international online wagering business to establish operations in India.

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

"If you work together with wagering companies, you will have a really effective method of marking out match fixing," states George Oborne, who runs a mock wagering website, India Bet.

But many likewise believe, that the taxes imposed on the bettor and the bookie will need to be affordable to make it appealing enough for them to gamble lawfully.

However, there are restrictions.

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

He includes that individuals who use unaccounted cash to place huge bets will never ever gamble legally.

Approval question

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

"Although lots of people are included in some sort of gaming - it's still a questionable problem for numerous," says our unnamed punter.

And offered that India has a federal structural - each state will have to also pass a separate law to legalise sports betting gambling in their territory.
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"The procedure is so long and challenging that it will take years," states Mr Ranina."That's why, we are negative about this becoming a truth anytime quickly."

Yet with the concept having been backed by a main panel for the very first time, a minimum of an argument has actually fired up around a topic - which till now was thought about a taboo.