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Sports betting and corruption: How to preserve the - SportAccord

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<strong>Sports</strong> <strong>betting</strong> <strong>and</strong> <strong>corruption</strong>: <strong>How</strong> <strong>to</strong> <strong>preserve</strong> <strong>the</strong> integrity of sport<br />

The proliferation of private opera<strong>to</strong>rs in <strong>the</strong> market also arouses concern as <strong>to</strong> <strong>the</strong> continuity of <strong>the</strong><br />

benefit derived by amateur sport from <strong>the</strong> finance traditionally granted <strong>to</strong> it by state lotteries, which<br />

represents substantial income (over 2 billion per year from lotteries that are members of <strong>the</strong> European<br />

Lotteries Association for example). The deregulation of <strong>the</strong> <strong>betting</strong> market must include consideration<br />

of <strong>the</strong> lotteries current assistance in financing sport.<br />

3. Public authorities<br />

The public authorities are responsible for exercising control over risks <strong>to</strong> public order connected with<br />

gambling activity. This involves combating <strong>the</strong> illegal market on <strong>the</strong> one h<strong>and</strong>, <strong>and</strong> protecting<br />

consumers <strong>and</strong> <strong>the</strong> general public on <strong>the</strong> o<strong>the</strong>r.<br />

Some sec<strong>to</strong>rs of activity receive specific attention from <strong>the</strong> public authorities when it is a question of<br />

protecting different parts of society <strong>and</strong> watching over <strong>the</strong> preservation of public order. As far as<br />

<strong>betting</strong> is concerned - <strong>and</strong> gambling more generally - <strong>the</strong> approaches vary according <strong>to</strong> country <strong>and</strong><br />

depend on existing socio-cultural structures. In all cases, <strong>the</strong> activity is recognised as an issue affecting<br />

society because it can lead <strong>to</strong> addictive excesses, hardship <strong>and</strong> vulnerability as a result of gambling<br />

debts.<br />

Internationally, <strong>the</strong>re a number of gambling regulation models: prohibition, exclusive or multiple<br />

concessions (monopolies or licences respectively), <strong>and</strong> authorisation. Legislations create dedicated,<br />

legal <strong>and</strong> institutional <strong>to</strong>ols. The regula<strong>to</strong>ry authorities manage <strong>the</strong> activity <strong>and</strong> endeavour <strong>to</strong> combat<br />

<strong>the</strong> illegal market <strong>and</strong> violations of <strong>the</strong> law.<br />

The rapid expansion of <strong>the</strong> Internet has necessitated <strong>the</strong> inclusion in regula<strong>to</strong>ry approaches of this<br />

gaming dissemination medium. As in o<strong>the</strong>r sec<strong>to</strong>rs of activity, <strong>the</strong> globalisation that characterises <strong>the</strong><br />

virtual world complicates <strong>the</strong> management of <strong>the</strong> activity. The increased appeal of <strong>the</strong> <strong>betting</strong> market<br />

for organised crime has prompted reflection on additional legal <strong>and</strong> structural measures <strong>to</strong> be taken in<br />

order <strong>to</strong> combat fraud effectively.<br />

More specifically, in terms of <strong>the</strong> manipulation of sporting results, it is not <strong>the</strong> remit of <strong>the</strong> public<br />

authorities <strong>to</strong> regulate sport <strong>and</strong> interfere in <strong>the</strong> organisation <strong>and</strong> running of sports competitions.<br />

Fur<strong>the</strong>rmore, <strong>the</strong> sports movement is committed <strong>to</strong> preserving its au<strong>to</strong>nomy. But on <strong>the</strong> basis of <strong>the</strong>ir<br />

sovereign powers, <strong>the</strong> public authorities are inclined <strong>to</strong> act in this domain insofar as it affects issues of<br />

public order such as combating <strong>corruption</strong>, crime <strong>and</strong> <strong>the</strong> informal economy. In <strong>the</strong> face of such risks,<br />

which are increasingly working <strong>the</strong>ir way in<strong>to</strong> sport, <strong>the</strong>re is a relative admission of powerlessness by<br />

sporting organisations. The problem <strong>the</strong>refore reaches beyond <strong>the</strong> field of sport itself, extending <strong>to</strong> <strong>the</strong><br />

wider issues of combating organised crime, particularly because of <strong>the</strong> risk of money-laundering.<br />

Sport is particularly attractive in this respect precisely because of <strong>the</strong> weak control exercised over it by<br />

<strong>the</strong> public authorities. Corruption in sport <strong>the</strong>refore constitutes a lucrative, low-risk activity in<br />

comparison <strong>to</strong> o<strong>the</strong>r criminal activities that are <strong>the</strong> focus of attention of <strong>the</strong> public authorities, <strong>and</strong> are<br />

punishable by very heavy penalties. Besides having a deterrent effect, specific criminal legislation in<br />

respect of fraudulent practices will help <strong>the</strong> sports movement <strong>to</strong> protect itself.<br />

Also, given <strong>the</strong> transnational nature of both organised crime <strong>and</strong> <strong>the</strong> sports <strong>betting</strong> market, it is<br />

important <strong>to</strong> have bridges of cooperation between countries at several levels (combating <strong>the</strong> illegal<br />

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