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 home situated in main Mumbai, a middle-aged man is enjoying the video game, nervously. He's resting on the edge of his grey colour couch with his mobile phone glued to his best hand.
He has made more than 10 calls in the last 30 minutes - not to go over the match but to keep modifying his bet.
Five minutes earlier his money was on Australia, today as the Indian batsman prepares to face the last over he's changed his mind.
"I think India is winning, make the change," he informs his bookie on the phone.
And a few minutes later on his forecast 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 three years he's been wagering on cricket matches. We can't reveal his name as what he's doing is unlawful in India.
Besides horse racing, sports betting wagering of any kind is not permitted in India. Despite that, illegal sports betting syndicates thrive 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 gambling cash is directed towards cricket.
Without any legal avenue, punters put bets utilizing their phones by making calls to bookies. Gamblers can bet on anything related to the cricket match, from who is winning to the highest individual 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 type of gaming in India, but unlike in the US which has a law restricting internet sports betting, there is nothing comparable here.
And offshore sports betting companies are using this loophole to entice Indians. Although there are no online sports betting operators based out of India, a lot individuals have registered accounts with overseas firms.
"Legally you can escape [with this], as the law is unclear for online gambling," says Mumbai- based lawyer HP Ranina.
But despite this, it is "offline gambling", done through telephone call which dominate 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 concept, saying it would help secure down on corruption in the country's favourite sport.
The Justice RM Lodha Commission was established to suggest 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 prohibited for 2 years after some gamers and team officials were condemned of fixing parts of the match at the wish of bookmakers.
The panel also argues that legalised wagering will bring in tax revenues 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 bet publicly," says our cricket bettor.
It would likewise open a huge service opportunity for licensed bookies and worldwide online wagering companies to establish operations in India.
And it would help limit match repairing in cricket and other sports betting, argue lots of, by assisting make transactions associated with gambling more transparent.
"If you work along with wagering companies, you will have a really effective technique of marking out match fixing," says George Oborne, who runs a mock wagering site, India Bet.
But numerous also believe, that the taxes levied on the gambler and the bookmaker will have to be sensible to make it attractive enough for them to gamble legally.
However, there are constraints.
"Definitely there will be prohibited wagering because (some) individuals would not want to leave an audit path by entering the white market," states Mr Oborne.
He adds that people who use unaccounted money to position big bets will never ever bet lawfully.
Approval question
For sports betting gambling to be legalised, parliamentary approval will be required to create a brand-new law, and politically this will be a hard idea to offer.
"Although many individuals are included in some sort of sports betting - it's still a questionable issue for lots of," says 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 area.
"The process is so long and challenging that it will take years," states Mr Ranina."That's why, we are cynical about this ending up being a truth anytime soon."
Yet with the idea having been backed by an official panel for the very first time, at least an argument has sparked around a topic - which till now was thought about a taboo.
