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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 needing 17 go to win versus Australia.

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

He has made more than 10 contact the last thirty 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 gets prepared to face the last over he's altered his mind.

"I think India is winning, make the modification," he tells 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 says with a childish glee.

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

Aside from horse racing, sports betting wagering of any kind is not enabled in India. Despite that, unlawful wagering syndicates flourish in the country.

'Black money'

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

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

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

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

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

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

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

Require legalisation

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

The Justice RM Lodha Commission was established to recommend modifications in the performance 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 been banned for two years after some players and team officials were condemned of fixing parts of the match at the request of bookmakers.

The panel likewise argues that legalised wagering will generate tax earnings for the exchequer that could amount to $2bn a year.

Even gamblers feel that legalising sports betting is a relocation in the best direction.

"I don't mind paying some money out my profits, as long as I can bet openly," states our cricket gambler.

It would likewise open a substantial organization chance for licensed bookmakers and worldwide online sports betting companies to set up operations in India.

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

"If you work together with wagering business, you will have an extremely efficient approach of stamping out match repairing," says George Oborne, who runs a mock sports betting website, India Bet.

But numerous also believe, that the taxes imposed on the gambler and the bookmaker will need to be affordable to make it appealing enough for them to gamble lawfully.

However, there are restrictions.

"Definitely there will be unlawful sports betting since (some) people would not wish to leave an audit path by entering the white market," states Mr Oborne.

He includes that people who use unaccounted money to put big bets will never gamble lawfully.

Approval concern

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

"Although lots of individuals are involved in some sort of sports betting - it's still a controversial issue for many," states our unnamed punter.

And considered that India has a federal structural - each state will need to likewise pass a separate law to legalise sports betting gambling in their territory.
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"The process is so long and challenging that it will take years," states Mr Ranina."That's why, we are cynical about this coming true anytime quickly."

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