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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 requiring 17 go to win against Australia.

In his two-bedroom house situated in central Mumbai, a middle-aged man is watching the video game, nervously. He's resting on the edge of his grey colour couch with his cellphone glued to his ideal hand.

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

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

"I believe India is winning, make the modification," he tells his bookie on the phone.

And a couple of minutes later on his prediction 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 decades 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 wagering syndicates grow in the country.

'Black cash'

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

Without any legal avenue, punters position bets using their phones by making calls to bookmakers. Gamblers can wager on anything associated to the cricket match, from who is winning to the greatest specific run scorer.

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

The 1867 Public Gambling Act bars any sort of gambling in India, however unlike in the US which has a law restricting web gaming, there is nothing comparable here.

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

"Legally you can escape [with this], as the law is uncertain for online gambling," states 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, saying it would help clamp down on corruption in the nation's preferred sport.

The Justice RM Lodha Commission was established to suggest modifications in the performance 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 actually been banned for 2 years after some players and team officials were found guilty of fixing parts of the match at the request of bookmakers.

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

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

"I do not mind paying some money out my revenues, as long as I can gamble publicly," states our cricket gambler.

It would likewise open a substantial company opportunity for certified bookies and worldwide online sports betting business to establish operations in India.

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

"If you work together with wagering companies, you will have an extremely efficient method of marking out match fixing," says George Oborne, who runs a mock wagering site, India Bet.

But many likewise think, that the taxes levied on the gambler and the bookie will need to be reasonable to make it attractive enough for them to bet legally.

However, there are restrictions.

"Definitely there will be prohibited wagering since (some) people wouldn't want to leave an audit trail by getting in the white market," says Mr Oborne.

He adds that individuals who use unaccounted cash to put big bets will never ever gamble legally.

Approval question

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

"Although lots of people are included in some sort of gaming - it's still a questionable problem for lots of," says our unnamed punter.

And offered that India has a federal structural - each state will need to also pass a separate law to legalise sports betting gambling in their area.
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"The procedure is so long and difficult that it will take years," says Mr Ranina."That's why, we are cynical about this coming true anytime quickly."

Yet with the concept having been endorsed by a main panel for the first time, at least a debate has ignited around a topic - which up until now was considered a taboo.