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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 press 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 central Mumbai, a middle-aged male is seeing the game, nervously. He's resting on the edge of his grey colour couch with his smart phone glued to his right-hand man.

He has made more than 10 calls in the last 30 minutes - not to discuss the match however to keep modifying his bet.

Five minutes previously his money was on Australia, and now as the Indian batsman prepares to face the last over he's changed his mind.

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

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

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

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

Other than horse racing, sports betting wagering of any kind is not permitted in India. Despite that, illegal wagering distributes thrive in the country.

'Black money'

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 sports betting money is directed towards cricket.

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

The majority of these deals include so-called "black money", which is money not declared to the taxman.

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

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

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

But in spite of this, it is "offline gaming", done through telephone call which dominate the market.

Calls for legalisation

The clamour to legalise wagering in cricket has grown after a panel designated by India's Supreme Court proposed the concept, saying it would assist clamp down on corruption in the nation's favourite sport.

The Justice RM Lodha Commission was set up to recommend modifications in the functioning of India's cricket regulatory body, the Board of Control for Cricket in India (BCCI), after the 2013 Indian Premier League sports betting scandal emerged.
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Two franchises have been banned for 2 years after some players and group officials were discovered guilty of repairing parts of the match at the request of bookies.

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

Even gamblers feel that legalising sports betting is a move in the right direction.

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

It would also open a substantial company opportunity for licensed bookmakers 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 included in sports betting more transparent.

"If you work along with wagering companies, you will have a really efficient approach of marking out match repairing," states George Oborne, who runs a mock wagering website, India Bet.

But many likewise believe, that the taxes imposed on the gambler and the bookmaker will need to be sensible to make it appealing enough for them to gamble legally.

However, there are constraints.

"Definitely there will be illegal wagering due to the fact that (some) individuals wouldn't want to leave an audit path by going into the white market," states Mr Oborne.

He adds that individuals who use unaccounted cash to put huge bets will never ever bet legally.
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Approval question

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

"Despite the fact that lots of people are included in some sort of gaming - it's still a questionable problem for numerous," states our unnamed punter.

And offered that India has a federal structural - each state will have to likewise pass a different law to legalise sports betting gambling in their area.
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"The procedure 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 an official panel for the very first time, a minimum of an argument has actually ignited around a topic - which till now was thought about a taboo.
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