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 needing 17 go to win versus Australia.

In his two-bedroom home situated in main Mumbai, a middle-aged man is enjoying the game, nervously. He's sitting on the edge of his grey colour sofa with his mobile phone glued to his right-hand man.

He has made more than 10 contact the last 30 minutes - not to talk about the match however to keep modifying his bet.

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

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

And a few minutes later his forecast becomes a reality, as India wins the match in a nail-biting surface.

"I have actually made $200 today," he states with a childish 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 prohibited in India.

Aside from horse racing, sports betting of any kind is not allowed in India. Despite that, prohibited sports betting distributes grow in the nation.

'Black money'

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 sports betting cash is directed towards cricket.

With no legal opportunity, punters put bets utilizing their phones by making calls to bookmakers. Gamblers can bank on anything related to the cricket match, from who is winning to the highest specific run scorer.

The majority of these transactions involve so-called "black cash", which is cash not declared to the taxman.

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

And overseas wagering business are using this loophole to lure Indians. Despite the fact that there are no online sports betting based out of India, a lot people have registered accounts with offshore companies.

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

But regardless of this, it is "offline sports betting", done through telephone call which dominate the marketplace.

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 country's preferred sport.

The Justice RM Lodha Commission was set up to recommend changes in the functioning 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 players and team authorities were found guilty of repairing parts of the match at the request of bookmakers.

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

Even gamblers feel that legalising sports betting is a relocation in the right instructions.

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

It would also open a big service opportunity for licensed bookies and global online wagering companies to establish operations in India.

And it would help restrict match repairing in cricket and other sports betting, argue many, by helping make transactions associated with sports betting more transparent.

"If you work together with wagering business, you will have a really efficient approach of stamping out match fixing," states George Oborne, who runs a mock wagering website, India Bet.
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But many also think, that the taxes imposed on the bettor and the bookie will have to be affordable to make it appealing enough for them to gamble lawfully.

However, there are limitations.

"Definitely there will be illegal wagering due to the fact that (some) individuals would not wish to leave an audit trail by entering the white market," says Mr Oborne.

He adds that individuals who use unaccounted cash to put huge bets will never ever bet 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 hard concept to offer.

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

And considered that India has a federal structural - each state will need to likewise pass a different 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 idea having been endorsed by a main panel for the first time, a minimum of a debate has sparked around a topic - which previously was considered a taboo.