IPL spot-fixing scandal: Why legalizing betting is the answer

Cricket and gambling go hand-in-hand in India

A lot has been said about how cricket has fallen again in the eyes of its own fans. Even more has been said about how some players who got caught in the spot-fixing scandal could be so greedy. Questions are raised over the IPL and the inability of the BCCI to be vigilant enough to avoid such embarrassments. The media will certainly stick to these topics of discussion. The panellists will stress on how lessons need to learnt and the guilty need to be cut to size. It’ll be the same old story for a few weeks before we find something else to be sensational enough to make the headlines again.

Although the media can stick to this kind of an approach and run shows with enraged panellists and TV grabs of angry fans, the sports ministry and the Indian government should have the larger picture in mind. How can they stifle this evil? Legalize it? Maybe.

Gambling on sports is not very acceptable across societies in general. Today, some form of sports betting exists in almost every country around the world. A growing demand for sports betting has been seen across various countries. Different governments have taken different stands with respect to sports betting. Some prohibit it, while other governments choose to regulate it.

In spite of the popularity of the sports like cricket and the evident interest in betting on the game from the fans, the Indian government’s approach to online gambling seems to be a rather confused one. The laws seem unaware of the modern advances of this field and incapable of showing any control over online gambling. There exists no legislation that directly addresses online gambling. The confusion in the Indian market exists because of the lack of rules, the untaxed nature and unclear laws. There are laws that restrict the locals from sending money abroad for the purpose of gambling. There are laws that take care of a whole lot of issues concerning the internet too. But none of them offer solutions on the confusion that prevails over internet gambling. This shows government disinterest, and is a matter of concern considering the opportunities that may lie at the end, if the government decides to structure its approach.

With a huge population and cricket being a very popular sport, the Indian government can choose to legalize betting and tax the betting industry. A lot of potential taxation revenue is lost because of the fact that the betting industry is not structured, and the lack of relevant laws. The possibilities of fraud are much higher in such a market, and a lot of them are not accounted for, as was seen in the IPL spot-fixing scandal. So the buck stops somewhere overseas; now what?

Gambling can be a complimentary good, as it can make a not-so-popular sport exciting for a viewer as he might have a stake in the outcome of the match. Having a stake in the outcome of a game might not directly aid the sport or the team directly, but it certainly accounts for an increase in the interest shown by a fan, which, in turn, can have a positive impact on the commercial viability of the sport itself.

Legalizing and regulating gambling in a country can be a positive move on several grounds. With the final decision of choosing between placing a bet or not to being in the hands of the bettors themselves, the gambling industry in the United Kingdom has proved that gambling can be undertaken with honesty and control. I was pleased to read an article that said the sports ministry is thinking about legalizing betting in the country. I hope a sensible decision is taken and taken soon.