Howzat? The clamour to legalise sports betting in India

Published

5 February 2016

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By Sameer Hashmi

Mumbai Business press reporter

It is the last over of the cricket match, with India needing 17 go to win versus Australia.

In his two-bedroom house located in main Mumbai, a middle-aged guy is enjoying the game, nervously. He's sitting on the edge of his grey colour sofa with his cellphone glued to his right hand.

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

Five minutes earlier his money was on Australia, and now as the Indian batsman prepares to deal with the last over he's altered his mind.

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

And a few minutes later his prediction 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 decades he's been banking on cricket matches. We can't expose his name as what he's doing is unlawful in India.

Other than horse racing, sports betting wagering of any kind is not allowed in India. Despite that, syndicates prosper in the country.

'Black money'

According to the Doha-based International 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.

With no legal opportunity, punters position bets utilizing their phones by making calls to bookmakers. Gamblers can bank on anything related to the cricket match, from who is winning to the highest private run scorer.

Most of these deals involve so-called "black cash", which is money not declared to the taxman.

The 1867 Public Gambling Act bars any kind of gambling in India, but unlike in the US which has a law restricting internet gambling, there is absolutely nothing comparable here.

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

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

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

Require legalisation

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

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

Two franchises have been banned for 2 years after some players and team authorities were condemned of repairing parts of the match at the wish of bookmakers.

The panel also argues that legalised wagering will bring in tax incomes for the exchequer that might total up to $2bn a year.

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

"I don't mind paying some cash out my profits, as long as I can gamble openly," states our cricket bettor.

It would also open a big business chance for licensed bookies and international online sports betting companies to establish operations in India.

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

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

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

However, there are restrictions.

"Definitely there will be illegal sports betting because (some) people wouldn't desire to leave an audit trail by entering the white market," states Mr Oborne.

He includes that people who utilize unaccounted cash to position huge bets will never bet lawfully.

Approval concern

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

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

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

"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 soon."

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