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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 located in main Mumbai, a middle-aged guy is seeing 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 employ the last 30 minutes - not to go over the match but to keep revising his bet.

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

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

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

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

For more than 3 decades he's been sports betting 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 permitted in India. Despite that, prohibited sports betting syndicates flourish in the country.

'Black cash'
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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 avenue, punters put bets utilizing their phones by making calls to bookies. Gamblers can bank on anything related to the cricket match, from who is winning to the greatest specific run scorer.

Most of these transactions include so-called "black money", which is money not stated to the taxman.

The 1867 Public Gambling Act bars any sort of gaming in India, however unlike in the US which has a law forbiding internet sports betting, there is nothing similar here.

And offshore wagering companies are using this loophole to lure Indians. Although there are no online wagering operators based out of India, a lot people have actually signed up accounts with offshore companies.

"Legally you can escape [with this], as the law is unclear for online gambling," states Mumbai- based attorney HP Ranina.

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

Calls for legalisation

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

The Justice RM Lodha Commission was set up to suggest 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 emerged.

Two franchises have actually been prohibited for 2 years after some gamers and team officials were discovered guilty of repairing parts of the match at the wish of bookies.

The panel likewise argues that legalised sports betting will generate tax revenues for the exchequer that might amount to $2bn a year.

Even gamblers feel that legalising sports betting wagering is a relocation in the ideal instructions.

"I do not mind paying some cash out my profits, as long as I can bet openly," states our cricket bettor.

It would likewise open a substantial company opportunity for licensed bookmakers and worldwide online sports betting business to set up operations in India.

And it would help limit match repairing in cricket and other sports betting, argue many, by assisting make transactions included in gambling more transparent.

"If you work alongside sports betting companies, you will have an extremely reliable approach of stamping out match repairing," states George Oborne, who runs a mock wagering website, India Bet.

But many also believe, that the taxes levied on the gambler and the bookie will have to be affordable to make it attractive enough for them to gamble legally.

However, there are restrictions.

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

He includes that people who utilize unaccounted money to position big bets will never gamble legally.

Approval question

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

"Despite the fact that lots of people are associated with some sort of gambling - it's still a questionable problem for numerous," states our unnamed punter.
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And provided that India has a federal structural - each state will have to also pass a different law to legalise sports betting gambling in their area.

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

Yet with the idea having been backed by a main panel for the first time, at least a debate has ignited around a topic - which previously was considered a taboo.
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