Howzat? The clamour to legalise sports betting in India

5 February 2016

By Sameer Hashmi

Mumbai Business press reporter

It is the last over of the cricket match, with India requiring 17 runs to win versus Australia.
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In his two-bedroom home located in central Mumbai, a middle-aged man is seeing the video game, nervously. He's resting on the edge of his grey colour sofa with his mobile phone glued to his right-hand man.

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

Five minutes earlier his cash was on Australia, now as the Indian batsman prepares to face the last over he's altered his mind.

"I believe India is winning, make the change," he informs 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 finish.

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

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

Other than horse racing, sports betting wagering of any kind is not enabled in India. Despite that, unlawful wagering distributes thrive in the nation.

'Black money'

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

Without any legal avenue, punters put bets using their phones by making calls to bookies. Gamblers can bet on anything associated to the cricket match, from who is winning to the greatest private run scorer.

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

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

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

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

But regardless of this, it is "offline gambling", done through call which control the market.

Require legalisation

The clamour to legalise sports betting in cricket has grown after a panel selected by India's Supreme Court proposed the idea, stating it would help clamp down on corruption in the country's preferred sport.
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The Justice RM Lodha Commission was set up 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 sports betting scandal emerged.
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Two franchises have been prohibited for two years after some players and team officials were condemned of fixing parts of the match at the request of bookies.

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

Even bettors feel that legalising sports betting wagering is a relocation in the right instructions.

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

It would also open a substantial company chance for certified bookmakers and global online wagering companies to set up operations in India.

And it would help limit match fixing in cricket and other sports betting, argue numerous, by assisting make deals associated with sports betting more transparent.
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"If you work together with wagering business, you will have an extremely efficient method of stamping out match repairing," states George Oborne, who runs a mock wagering site, India Bet.

But numerous also think, that the taxes levied on the gambler and the bookmaker will need to be affordable to make it attractive enough for them to gamble legally.

However, there are limitations.

"Definitely there will be illegal wagering due to the fact that (some) people wouldn't want to leave an audit path by getting in the white market," states Mr Oborne.

He includes that individuals who utilize unaccounted money to put huge bets will never ever bet legally.

Approval concern

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

"Although many individuals are included in some sort of gaming - it's still a questionable issue 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 gambling in their territory.

"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 quickly."

Yet with the idea having been endorsed by an official panel for the first time, at least an argument has ignited around a topic - which up until now was thought about a taboo.