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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 against Australia.

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

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

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

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

And a few minutes later his forecast comes to life, as India wins the match in a nail-biting finish.

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

For more than 3 years he's been wagering on cricket matches. We can't reveal his name as what he's doing is prohibited in India.

Other than horse racing, sports betting of any kind is not allowed India. Despite that, unlawful wagering 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 is worth some $150bn a year. And much of that gambling money is directed towards cricket.

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

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

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

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

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

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

Require legalisation

The clamour to legalise wagering in cricket has grown after a panel selected by India's Supreme Court proposed the concept, stating it would help 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 regulative body, the Board of Control for Cricket in India (BCCI), after the 2013 Indian Premier League sports betting scandal came to light.

Two franchises have been prohibited for 2 years after some gamers and team officials were found guilty of repairing parts of the match at the request of bookies.

The panel also argues that legalised sports betting will generate tax incomes for the exchequer that might total up to $2bn a year.

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

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

It would also open a substantial business chance for licensed bookmakers and global online sports betting companies to set up operations in India.

And it would assist restrict match repairing in cricket and other sports betting, argue many, by assisting make transactions involved in sports betting more transparent.

"If you work together with wagering companies, you will have a very reliable approach of stamping out match repairing," states George Oborne, who runs a mock wagering website, India Bet.

But many also believe, that the taxes levied on the bettor and the bookmaker will have to be sensible to make it attractive enough for them to gamble lawfully.

However, there are limitations.

"Definitely there will be prohibited sports betting because (some) people wouldn't desire to leave an audit path by going into the white market," says Mr Oborne.

He adds that individuals who utilize unaccounted money to position huge bets will never gamble lawfully.

Approval question

For sports betting to be legalised, parliamentary approval will be required to develop a brand-new law, and politically this will be a hard idea 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 also pass a different law to legalise sports betting in their area.
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"The procedure is so long and difficult 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 actually been backed by an official panel for the very first time, at least an argument has ignited around a topic - which previously was considered a taboo.
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