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 press reporter

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

In his two-bedroom home situated in main Mumbai, a middle-aged guy is viewing the video game, nervously. He's resting on the edge of his grey colour sofa with his mobile phone glued to his right-hand man.

He has made more than 10 employ the last thirty minutes - not to talk about the match however to keep modifying his bet.

Five minutes earlier his cash was on Australia, but now as the Indian batsman prepares yourself 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 prediction comes to life, as India wins the match in a nail-biting surface.

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

For more than three years he's been sports betting 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 allowed in India. Despite that, prohibited wagering in the country.

'Black cash'

According to the Doha-based International Centre for sports betting Security, India's unlawful sports betting wagering market deserves some $150bn a year. And much of that sports betting cash 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 highest individual run scorer.

Most of these transactions involve so-called "black cash", which is cash 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 gaming, there is nothing comparable here.

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

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

But regardless of this, it is "offline gaming", done through phone calls which control the marketplace.

Calls for legalisation

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

The Justice RM Lodha Commission was established to recommend changes in the performance of India's cricket regulatory 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 2 years after some players and team officials were found guilty of fixing parts of the match at the wish of bookies.

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

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

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

It would also open a big company opportunity for licensed bookies and international online wagering companies to set up operations in India.

And it would help restrict match repairing in cricket and other sports betting, argue lots of, by assisting make transactions included in sports betting more transparent.

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

But many likewise think, that the taxes imposed on the gambler and the bookie will need to be reasonable to make it attractive enough for them to bet lawfully.

However, there are restrictions.
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"Definitely there will be unlawful wagering because (some) individuals would not wish to leave an audit trail by entering the white market," says Mr Oborne.

He includes that individuals who utilize unaccounted cash to place big bets will never ever bet legally.

Approval concern

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

"Although many people are associated with some sort of gaming - it's still a controversial issue 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 territory.
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"The process is so long and difficult that it will take years," says Mr Ranina."That's why, we are negative about this coming true anytime soon."

Yet with the concept having actually been backed by a main panel for the very first time, a minimum of a debate has fired up around a topic - which previously was thought about a taboo.
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