DM Deshpande
While Indian Premier League (IPL) is a spectacular success as a mega cricketing event, it has also boosted betting and gambling in India. The sheer numbers of online gaming platforms that have emerged in recent years is mind boggling.
Gaming platforms were a trickle when the IPL started as a tournament 18 years back. One or two online platforms existed for a very long time. Now it is a virtual flood as more and more persons get hooked on to one or the other platform.
As per reports the illegal betting industry relating to online sporting events is worth over $100 billion annually in India and growing at 30 per cent. In fact BCCI- the cricketing regulatory body was initially hesitant to allow advertising and sponsorship by gaming entities. But now, IPL is an event that is overwhelmingly embraced by online platforms.
Cricket alone corners a major share of attention, prize money and revenues for the owners. Initially betting was restricted to a few sports like cards, poker besides cricket; now it spans almost all major sporting events including football, kabaddi and hockey. There are some indications that the youths get hooked in larger numbers. What starts as an Rs.500 one time fun event, later becomes a habit that easily goes out of control.
The lure of easy money, celebrities advertising and dreams of expensive luxury living are temptations hard to resist for the youth. There are reports of people with debts of Rs 7 to Rs 8 crores. Offline betting is illegal in India. Several federal states too have laws that prohibit it. Online betting appears to be a grey area. In any case, there are a number of loopholes that enable the players to get away with activities that are very close to gambling.
Owners of online gaming platforms argue that their sport is based on an element of skill and therefore does not amount to gambling. Typically gambling is defined as an activity that is based on chance.
The line of demarcation between the two gets blurred, in any case, as youths get addicted and play irresponsibly. With the help of AI tools and algorithms owners control the winners and prize money. Initially they lure the youths with small wins. Once hooked, the habit gets out of control. Three A’s govern the trade-affordability, anonymity and accessibility.
As a result, skills, cricketing knowledge and expertise have little to do with who wins and who does not. The stakes are high in betting. Flow of easy money is conducive for money laundering, funding of terrorist and anti-social activities. Presently, governments cannot control fantasy gaming platforms that are based overseas. There is a loss-a huge one annually- in terms of tax revenue.
Hence, for a long time, some experts have advocated legalising betting in India as is done in the west. If there is demand, people will find avenues to find ways of meeting it, legal or otherwise. Once legalized, the government can devise methods of curbing excessive exposure by levying higher taxes that are based on slabs-higher slabs attracting higher levies.
It should also be possible to tighten the norms and with better vigil and monitoring minors can be tracked and dissuaded from entering. There will be social resistance and offline betting, even when legalised, may prove to be counter productive due to the role of enormous amounts of black money in the economy.
To begin with, hence, at least online betting could be legalised. With the digital economy growing by leaps and bounds, youths are major players in this segment. Presently there is a dearth of authentic data relating to betting and fantasy gaming apps. Once legalised relevant and useful data could be collected which will help in devising appropriate policies, procedures and rules. As per reports, the government is losing $24 billion in tax revenues annually due to prevalence of illegal betting.
The BCCI is the richest cricketing body in the world. IPL is a brand that is growing exponentially and is among the top sporting brands in the world. It has hugely contributed to the success of Indian teams in all formats, especially the white ball cricket. Not just in terms of finance, contribution has come in the form of huge opportunities for all players- coaches, commentators and sports administrators.
Even the broader economy has benefited from the popularity of the annual mega event; franchisees, advertisers, TV channels, OTT platforms et al-all stakeholders have a share in the growing pie. It is, therefore, imperative to ensure that the IPL brand is not adversely impacted.
Some experts have also recommended establishing a proper regulatory body. Last year the Ministry of Electronics and Information and Technology came out with a set of rules and regulations for the betting industry. While it was welcomed, it does not appear to have made any significant impact on the players, owners or the methods adopted for the conduct of business. These rules make a distinction between permissible skill based online gaming like fantasy sports and betting and gambling.
Without proper enforcement, the gaming ecosystem is plagued by illegal players, some from overseas. Unless there is a collaboration between a strong regulator, legitimate owners and gaming community for the promotion of permissible gaming, the industry will continue to be haunted by unscrupulous elements.
Despite clear directives from the Ministry of Information and Broadcasting prohibiting offshore betting platforms, such entities continue to advertise aggressively across digital and mainstream media. There is a need to draw a clear line and take measures urgently to streamline the industry.
At stake is not just the IPL brand, the youths in India are being lured and misled by prospects of earning easy money. Even the growth of the digital economy in an orderly and transparent manner is dependent on taking corrective steps.
The author has four decades of experience in higher education teaching and research. He is the former first vice-chancellor of ISBM University, Chhattisgarh
