Botham made these comments on IPL during his 2014 MCC Spirit of Cricket Cowdrey Lecture at Lord's yesterday (September 3).
"I am worried about the IPL. In fact I fear that it shouldn't be there at all as it is changing the priorties in world cricket," the former all-rounder said.
The 58-year-old added, "Players are slaves to it. Administrators bow to it."
"How on earth did the IPL own the best players in world cricket for two months a year and not pay a penny to the boards who brought these players into the game? The IPL is too powerful for the long term good of the game."
Botham, who played 102 Tests for England, said IPL provided the "perfect opportunity" for betting.
"Corruption is enough of a problem in itself, but the IPL compounds that problem given it provides the perfect opportunity for betting and therefore fixing," he said.
IPL started in 2008 and this year was the seventh edition, which was won by Kolkata Knight Riders (KKR).