Fix Fixing

The scourge has struck India again. In the last couple of weeks, details of spot-fixing in the Indian Premier League – among the biggest cricketing events globally – have continued to emerge, providing more than a peek into the murky workings of the world of illegal betting. And this is probably just the beginning.  

Police investigations are ongoing; the media continues to think its own “investigations” are more meaningful; former cricketers are thriving in the role of holier-than-thou preachers; and several supposed fans of the game are sitting in glee, overcome with the I-told-you-so syndrome.  

But what will come out of all this? Some cricketers may be banned from the sport, a board president may be forced to resign, a few bookies may be held, and scores of fans may lose their faith in the format, and some in the game altogether. Most importantly, and worryingly, the basic foundation on which the multi-billion dollar fixing industry thrives will still be untouched. 

Betting is illegal in India, and hence the activities of the entire gamut of actors involved in this malaise fall outside of the scope of what the government can regulate. In the view of this writer, the legalising of sports betting in India is the best way forward. While it will not eliminate fixing altogether, it will go a long way in ensuring that the activity is not seriously damaging.  

Some argue there is a problem with the sport. Others opine that the problem lies with the IPL as a tournament, as it offers a glut of matches and involves a huge number of lesser players who are more likely to be financially gullible. Yet others claim the whole thing is only reflective of where is India as a nation – both in terms of rapidly growing wealth and in terms of a chalta hai attitude towards corruption.  

All of these arguments overlook the fact that in having a blanket ban on all betting activity in the country, India has created conditions that are ripe for black market betting. The IPL is merely the safest and most convenient vehicle for these activities. Legalising sports betting will help bring illegal betting syndicates to a near halt, and has other potential benefits. It will help bring accountability and ensure that large sums of money are not transferred through illegal channels. This can lead to a reduction in cases involving spot and match fixing and money laundering.  

According to the Federation of Indian Chambers of Commerce and Industry, India loses an estimated $2.1bn-$3.6bn in tax revenue through black market operations in sports betting. But allowing private betting operators and taxing them is just one model.  

The second model, and likely a better one, is to have a government-owned betting agency like they do in Singapore. Singapore Pools, the country’s only lottery and sports betting operator, is wholly-owned by the Singapore government. It is a non-profit making organisation that provides a legal avenue for betting, and channels all its surplus earnings to the benefit of the community. It is one of the largest grant-making organisations in Singapore today and supports hundreds of projects across areas such as social services, healthcare, sports, education and community development.

The intricacies will undeniably have to be modified to suit India’s vastly different requirements; but as a model that really works, one will be hard-pressed to find any better.

 

(This was a column published in The Himalayan Times on 2 June 2013).