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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 needing 17 runs to win versus Australia.

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

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

Five minutes earlier his cash was on Australia, now as the Indian batsman prepares to deal with the last over he's changed his mind.

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

And a couple of minutes later on his forecast comes to life, as India wins the match in a nail-biting surface.

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

For more than three years he's been banking on cricket matches. We can't expose his name as what he's doing is prohibited in India.

Besides horse racing, sports betting of any kind is not allowed India. Despite that, prohibited sports betting syndicates thrive in the country.

'Black money'

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

Without any legal avenue, punters place bets utilizing their phones by making calls to bookies. Gamblers can bet on anything associated to the cricket match, from who is winning to the highest private run scorer.

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

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

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

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

But despite this, it is "offline gambling", done through call which control the market.

Calls for legalisation

The clamour to legalise wagering in cricket has grown after a panel appointed by India's Supreme Court proposed the concept, saying it would help clamp down on corruption in the nation'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 banned for 2 years after some players and team officials were condemned of repairing parts of the match at the wish of bookmakers.

The panel also argues that legalised sports betting will tax incomes for the exchequer that could amount to $2bn a year.

Even bettors feel that legalising sports betting wagering is a move in the ideal instructions.

"I don't mind paying some cash out my earnings, as long as I can bet openly," says our cricket gambler.
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It would also open a big company opportunity for licensed bookmakers and worldwide online sports betting business to establish operations in India.

And it would assist limit match repairing in cricket and other sports betting, argue lots of, by helping make transactions associated with sports betting more transparent.

"If you work together with sports betting companies, you will have a very effective method of marking out match fixing," states George Oborne, who runs a mock wagering site, India Bet.

But lots of also believe, that the taxes levied on the gambler and the bookmaker will have to be reasonable to make it attractive enough for them to bet legally.

However, there are limitations.
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"Definitely there will be prohibited sports betting due to the fact that (some) individuals wouldn't wish to leave an audit trail by going into the white market," says Mr Oborne.

He includes that people who use unaccounted cash to put huge bets will never gamble legally.

Approval question

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

"Although lots of people are involved in some sort of gaming - it's still a controversial concern for many," says our unnamed punter.

And considered that India has a federal structural - each state will need to also pass a different law to legalise sports betting in their territory.

"The process is so long and challenging that it will take years," states Mr Ranina."That's why, we are negative about this ending up being a truth anytime quickly."

Yet with the concept having been backed by a main panel for the very first time, a minimum of a dispute has sparked around a subject - which till now was thought about a taboo.
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