Howzat? The clamour to legalise sports betting in India

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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 go to win versus Australia.

In his two-bedroom home located in main Mumbai, a middle-aged man is viewing the video 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 calls in the last 30 minutes - not to go over the match however to keep modifying his bet.

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

"I think India is winning, make the modification," he tells his bookmaker on the phone.

And a few minutes later on his forecast becomes a reality, as India wins the match in a nail-biting surface.

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

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

Besides horse racing, sports betting wagering of any kind is not enabled in India. Despite that, prohibited wagering 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 place bets using their phones by making calls to bookmakers. Gamblers can bank on anything associated to the cricket match, from who is winning to the greatest specific run scorer.

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

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

And offshore wagering business are using this loophole to entice Indians. Even though there are no online wagering operators based out of India, a lot individuals have actually signed up accounts with offshore companies.

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

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

Calls for legalisation

The clamour to legalise sports betting in cricket has grown after a panel designated by India's Supreme Court proposed the idea, stating it would assist clamp down on corruption in the country's favourite sport.
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The Justice RM Lodha Commission was established to suggest 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 actually been banned for 2 years after some gamers and group officials were condemned of repairing parts of the match at the behest of bookmakers.

The panel likewise argues that legalised wagering will bring in tax incomes 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 direction.

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

It would also open a big company opportunity for certified bookmakers and international online wagering business to establish operations in India.

And it would assist restrict match fixing in cricket and other sports betting, argue lots of, by helping make deals included in gambling more transparent.

"If you work alongside wagering companies, you will have an extremely effective approach of marking out match fixing," says George Oborne, who runs a mock wagering site, India Bet.

But lots of also believe, that the taxes levied on the gambler and the bookie will need to be reasonable to make it appealing enough for them to bet lawfully.

However, there are limitations.

"Definitely there will be illegal sports betting due to the fact that (some) individuals would not wish to leave an audit trail by going into the white market," says Mr Oborne.

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

Approval concern

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

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

And offered that India has a federal structural - each state will need to also pass a separate law to legalise sports betting in their territory.
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"The procedure is so long and tricky that it will take years," says 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, a minimum of an argument has ignited around a subject - which previously was thought about a taboo.
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