Howzat? The clamour to legalise sports betting in India
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bet9ja.com
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 go to win versus Australia.

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

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

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

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

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

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

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

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

'Black money'

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

Without any legal opportunity, 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 individual run scorer.

Most of these transactions include so-called "black cash", which is money not declared to the taxman.

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

And offshore sports betting business are using this loophole to draw 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 companies.

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

But despite this, it is "offline gambling", done through call which control the marketplace.

Require legalisation

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

The Justice RM Lodha Commission was established to suggest changes in the performance 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 two years after some players and group authorities were found guilty of fixing parts of the match at the wish of bookies.

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 wagering is a relocation in the right instructions.

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

It would also open a big service opportunity for licensed bookies and global online sports betting business to set up operations in India.

And it would help restrict match fixing in cricket and other sports betting, argue lots of, by assisting make deals included in sports betting more transparent.

"If you work together with sports betting companies, you will have an extremely effective approach of stamping out match fixing," says George Oborne, who runs a mock wagering website, India Bet.

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

However, there are limitations.

"Definitely there will be illegal sports betting since (some) people would not wish to leave an audit trail by entering the white market," says Mr Oborne.

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

Approval concern

For sports betting to be legalised, parliamentary approval will be required to produce a new law, and politically this will be a hard concept to offer.

"Despite the fact that lots of people are involved in some sort of sports betting - it's still a questionable problem for numerous," says 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 gambling in their territory.
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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 soon."

Yet with the concept having been backed by an official panel for the very first time, at least a debate has actually sparked around a subject - which until now was considered a taboo.
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