A sporting chance

On May 21, 2013, I wrote on this newspaper that betting should be made legal in India. On January 4, 2016, the Lodha committee — employed by the Supreme Court to clean up cricket in India — amongst a host of other recommendations, suggested the same.

The Lodha panel’s recommendations came with a bunch of conditions. First, regulatory watchdogs should strictly monitor betting houses as well as thosetransacting there. Next, the players, administrators and “the others closely associated with the sport” would need to declare theirincome and assets for the sake of transparency. Third, licenses would have to be issued to those placing the bets as well, with age and identification details recorded. Fourth, strict sanctions would have to be imposed on those transgressing the license and other requirements. And, finally, betting by administrators, players, match officials, team officials, owners, etc., should continue to be an offence under the BCCI and IPL regulations.

We can foresee problems already. Who exactly are the “others closely associated with the sport”? In Indian cricket, this could mean anyone. The BCCI is in the best position to clarify on this. One of the main arguments in favour of betting is people bet anyway, hence we might as well make it legal.

Of course, there will still be people who would indulge in illegal betting. This can’t be helped but can be minimised. Laws in India are normally made for those who intend to follow them. There are enough and more laws with strict provisions to penalise those that don’t. Legalising cricket betting will reduce the demand for illegal betting, forcing the suppliers to go legal.

The Lodha committee recommends a regulatory watchdog for betting. This can be set up very easily — all it takes is to get a couple of Bills passed if and when Parliament functions. Can the regulator really be a watchdog? Apart from the betters themselves, not many may know the intricacies of betting. Like in any startup, getting the right persons on board the regulatory authority is a must.

Once betting becomes legal, any finance minister would be tempted to levy a betting tax. The UK levies a tax of 15 per cent on gross profits. For remote control betting, the source of taxation is the point of consumption. It would be ideal to wait for a couple of years for the activity to mature and find a level before slapping a betting tax.

The Lodha committee advocates strict sanctions on those not following the license and other requirements. This is an area where we have been found wanting time and again. The need to implement these provisions without fear or favour becomes critical in cricket in India where many a penal action is reported to have been overturned just because someone placed a strategic phone call.

In setting up the regulator, manning it and prescribing the nitty-gritty of cricket betting in India, the government should take the assistance of experienced betting houses in the UK and other countries. India can allow FDI in betting, inviting betting houses such as Ladbrokes to set shop here.

The Lodha committee has done its bit to legalise betting in India, it is now up to the government and the BCCI to take it forward. If anyone can win this bet, it’s them.

The writer is a chartered accountant

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