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

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

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

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

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

And a few minutes later his forecast comes true, as India wins the match in a nail-biting finish.

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

For more than three 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 of any kind is not allowed in India. Despite that, illegal 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 money is directed towards cricket.

Without any legal avenue, punters put bets utilizing their phones by making calls to bookies. Gamblers can wager on anything related to the cricket match, from who is winning to the highest private 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 gambling in India, but unlike in the US which has a law restricting internet sports betting, there is absolutely nothing similar here.

And offshore wagering companies 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 actually signed up accounts with offshore firms.

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

But despite this, it is "offline gaming", done through phone calls which control the market.

Require legalisation

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

The Justice RM Lodha Commission was set up to suggest modifications in the performance of India's cricket regulatory body, the Board of Control for Cricket in India (BCCI), after the 2013 Indian Premier League sports betting scandal came to light.

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

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

Even bettors feel that legalising sports betting 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 gambler.

It would also open a big business chance for certified bookmakers and global online sports betting companies to set up operations in India.

And it would assist restrict match fixing in cricket and other sports betting, argue many, by helping make deals associated with sports betting more transparent.

"If you work together with sports betting business, you will have a really effective method of marking out match fixing," says George Oborne, who runs a mock wagering site, India Bet.

But numerous likewise believe, that the taxes levied on the bettor and the bookmaker will have to be reasonable to make it appealing enough for them to gamble legally.

However, there are constraints.

"Definitely there will be prohibited wagering because (some) individuals wouldn't want to leave an audit trail by entering the white market," says Mr Oborne.

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

Approval concern

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

"Although many individuals are included in some sort of sports betting - it's still a questionable concern for many," states our unnamed punter.

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

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

Yet with the concept having been endorsed by an official panel for the very first time, at least an argument has sparked around a topic - which previously was thought about a taboo.