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Howzat? The clamour to legalise sports betting wagering 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 runs to win versus Australia.

In his two-bedroom house situated in central Mumbai, a middle-aged guy is enjoying the video game, nervously. He's resting on the edge of his grey colour sofa with his smart phone glued to his right hand.

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

Five minutes earlier his money was on Australia, today as the Indian batsman gets all set to deal with the last over he's altered his mind.

"I believe India is winning, make the change," he tells his bookmaker on the phone.

And a couple of 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 3 years he's been banking on cricket matches. We can't reveal his name as what he's doing is prohibited in India.

Other than horse racing, sports betting of any kind is not permitted in India. Despite that, prohibited sports betting syndicates thrive in the nation.

'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 sports betting cash is directed towards cricket.

Without any legal opportunity, punters place bets using their phones by making calls to bookies. Gamblers can bank on anything related to the cricket match, from who is winning to the highest private run scorer.

Most 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 gaming in India, but unlike in the US which has a law restricting internet sports betting, there is nothing comparable here.

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

"Legally you can get away [with this], as the law is uncertain for online gaming," says Mumbai- based attorney HP Ranina.

But despite this, it is "offline gambling", done through call which dominate the marketplace.

Require legalisation

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

The Justice RM Lodha Commission was established to recommend 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 prohibited for two years after some gamers and team authorities were condemned of repairing parts of the match at the behest of bookmakers.
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The panel also argues that legalised sports betting will generate tax earnings for the exchequer that could total up to $2bn a year.

Even bettors feel that legalising sports betting is a move in the ideal direction.

"I don't mind paying some money out my revenues, as long as I can gamble publicly," states our cricket bettor.

It would also open a huge organization chance for licensed bookies and international online wagering business to set up in India.

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

"If you work together with wagering business, you will have a really efficient method of stamping out match fixing," states George Oborne, who runs a mock wagering site, India Bet.

But many also think, that the taxes imposed on the gambler and the bookmaker will have to be sensible to make it appealing enough for them to bet lawfully.
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However, there are restrictions.

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

He adds that individuals who utilize unaccounted cash to position huge bets will never bet lawfully.
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Approval concern

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

"Although many individuals are involved in some sort of gaming - it's still a questionable problem for many," says our unnamed punter.

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

"The process is so long and tricky that it will take years," says Mr Ranina."That's why, we are negative about this coming true anytime quickly."

Yet with the concept having actually been backed by an official panel for the first time, a minimum of an argument has actually fired up around a subject - which until now was considered a taboo.