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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 needing 17 runs to win against Australia.

In his two-bedroom house located in main Mumbai, a middle-aged male is seeing the video game, nervously. He's resting on the edge of his grey colour couch with his smart phone glued to his right-hand man.

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

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

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

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

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

For more than 3 decades he's been sports betting on cricket matches. We can't reveal his name as what he's doing is unlawful in India.

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

'Black money'

According to the Doha-based International Centre for sports betting Security, India's prohibited sports betting wagering market is worth some $150bn a year. And much of that gambling money is directed towards cricket.

With no legal avenue, punters place bets using their phones by making calls to bookies. Gamblers can bank on anything associated to the cricket match, from who is winning to the greatest individual run scorer.

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

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

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

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

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

Calls for legalisation

The clamour to legalise wagering in cricket has actually grown after a panel selected by India's Supreme Court proposed the concept, saying it would help secure down on corruption in the nation's favourite sport.

The Justice RM Lodha Commission was to recommend modifications 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.

Two franchises have actually been banned for two years after some gamers and team officials were found guilty of fixing parts of the match at the request of bookmakers.

The panel likewise 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 relocation in the best direction.

"I do not mind paying some money out my profits, as long as I can gamble publicly," says our cricket bettor.

It would also open a huge service chance for certified bookmakers and international online sports betting companies to set up operations in India.

And it would assist restrict match repairing in cricket and other sports betting, argue lots of, by helping make transactions associated with sports betting more transparent.

"If you work together with sports betting companies, you will have an extremely efficient approach of marking out match fixing," states George Oborne, who runs a mock wagering site, India Bet.

But many also think, 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 constraints.

"Definitely there will be unlawful wagering because (some) individuals wouldn't desire to leave an audit trail by going into the white market," states Mr Oborne.

He includes that individuals who utilize unaccounted cash to put huge bets will never ever gamble lawfully.

Approval concern

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

"Even however many people are associated with some sort of sports betting - it's still a controversial issue for lots of," says our unnamed punter.

And provided that India has a federal structural - each state will need to likewise pass a separate law to legalise sports betting in their area.
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"The process is so long and difficult that it will take years," says Mr Ranina."That's why, we are cynical about this ending up being a truth anytime quickly."

Yet with the idea having been backed by a main panel for the very first time, a minimum of an argument has sparked around a topic - which till now was considered a taboo.