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 press reporter

It is the last over of the cricket match, with India requiring 17 runs to win against Australia.
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In his two-bedroom house located in main Mumbai, a middle-aged male is enjoying the video game, nervously. He's sitting on the edge of his grey colour sofa with his mobile phone glued to his ideal hand.

He has actually made more than 10 hire the last 30 minutes - not to go over the match but to keep modifying his bet.

Five minutes earlier his money was on Australia, however now as the Indian batsman prepares yourself to deal with 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 becomes a reality, as India wins the match in a nail-biting finish.

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

For more than three decades he's been wagering 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 permitted in India. Despite that, unlawful sports betting distributes grow in the country.

'Black cash'

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

Without any legal opportunity, punters place bets using their phones by making calls to bookmakers. Gamblers can bank on anything related to the cricket match, from who is winning to the highest individual run scorer.

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

The 1867 Public Gambling Act bars any kind of gambling in India, however unlike in the US which has a law forbiding web gambling, there is nothing comparable here.

And offshore sports betting companies are using this loophole to draw Indians. Even though there are no online wagering operators based out of India, a lot people have registered accounts with overseas companies.
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"Legally you can escape [with this], as the law is uncertain for online gambling," says Mumbai- based lawyer HP Ranina.
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But in spite of this, it is "offline gambling", done through call which dominate the market.

Calls for legalisation

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

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

Two franchises have been banned for two years after some gamers and team officials were guilty of fixing parts of the match at the behest of bookies.

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

Even bettors feel that legalising sports betting wagering is a relocation in the ideal direction.

"I don't mind paying some cash out my earnings, as long as I can bet openly," says our cricket gambler.

It would likewise open a huge business chance for certified bookies and international online sports betting companies to establish operations in India.

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

"If you work together with sports betting business, you will have a really reliable approach of stamping out match fixing," says George Oborne, who runs a mock sports betting website, India Bet.

But numerous likewise think, that the taxes imposed on the bettor and the bookmaker will have to be reasonable to make it appealing enough for them to gamble legally.

However, there are limitations.

"Definitely there will be unlawful sports betting because (some) people would not want to leave an audit path by going into the white market," says Mr Oborne.

He adds that people who utilize unaccounted money to place huge bets will never bet legally.

Approval concern

For sports betting gambling to be legalised, parliamentary approval will be required to develop a brand-new law, and politically this will be a difficult idea to offer.

"Despite the fact that many individuals are involved in some sort of sports betting - it's still a questionable problem for numerous," 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 challenging that it will take years," states Mr Ranina."That's why, we are cynical about this becoming a reality anytime quickly."

Yet with the concept having actually been backed by a main panel for the very first time, at least a debate has actually ignited around a topic - which till now was considered a taboo.
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