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 press reporter

It is the last over of the cricket match, with India requiring 17 runs to win versus Australia.

In his two-bedroom house situated in central Mumbai, a is watching the game, nervously. He's resting on the edge of his grey colour couch with his smart phone glued to his best hand.

He has actually made more than 10 employ the last thirty minutes - not to discuss the match however to keep revising his bet.

Five minutes earlier his money was on Australia, now as the Indian batsman gets all set to face the last over he's altered his mind.

"I think India is winning, make the modification," he tells his bookmaker on the phone.

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

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

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

Other than horse racing, sports betting wagering of any kind is not allowed India. Despite that, unlawful wagering distributes grow in the nation.

'Black cash'

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

With no legal avenue, punters put bets using 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 deals include so-called "black money", which is cash not declared to the taxman.

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

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

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

But in spite of this, it is "offline gaming", done through phone calls which control the marketplace.

Require legalisation

The clamour to legalise wagering in cricket has actually grown after a panel appointed by India's Supreme Court proposed the idea, stating it would help secure down on corruption in the nation's favourite sport.

The Justice RM Lodha Commission was established 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 came to light.

Two franchises have been prohibited for 2 years after some gamers 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 generate tax profits for the exchequer that could amount to $2bn a year.

Even gamblers feel that legalising sports betting is a move in the best instructions.

"I do not mind paying some money out my revenues, as long as I can bet openly," says our cricket gambler.

It would also open a substantial business opportunity for certified bookies and worldwide online wagering business to establish operations in India.

And it would help 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 companies, you will have a really efficient technique of stamping out match fixing," states George Oborne, who runs a mock wagering site, India Bet.

But lots of also think, that the taxes imposed on the gambler and the bookmaker will need to be affordable to make it attractive enough for them to bet lawfully.

However, there are limitations.

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

He adds that people who utilize unaccounted cash to position big bets will never ever gamble legally.

Approval question

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

"Although lots of people are associated with some sort of gambling - it's still a questionable issue for many," states our unnamed punter.

And given that India has a federal structural - each state will have to also pass a separate law to legalise sports betting in their territory.
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"The process is so long and difficult that it will take years," states Mr Ranina."That's why, we are cynical about this ending up being a truth anytime quickly."

Yet with the concept having been endorsed by an official panel for the very first time, a minimum of a debate has actually ignited around a topic - which previously was thought about a taboo.