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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 />

this risk manifest itself <strong>and</strong> how can it be detected as far upstream as possible? What are <strong>the</strong><br />

characteristics of <strong>the</strong> current organisation of <strong>the</strong> world of sport that make it intrinsically vulnerable <strong>to</strong><br />

criminals whose aim is <strong>to</strong> make a profit from opportunities created by online sports <strong>betting</strong>? What is<br />

<strong>the</strong> current situation with programmes <strong>to</strong> prevent, detect <strong>and</strong> combat rigged bets <strong>and</strong> matches? What<br />

are <strong>the</strong> main recommendations we can make <strong>to</strong> optimise <strong>the</strong> defense of <strong>the</strong> integrity of sport?<br />

The first part of <strong>the</strong> white paper is devoted <strong>to</strong> underst<strong>and</strong>ing <strong>the</strong> risk of <strong>corruption</strong> linked <strong>to</strong> sports<br />

<strong>betting</strong>. As highlighted in <strong>the</strong> report by Jean-Francois Vilotte, President of ARJEL, published in<br />

March 2011, research in<strong>to</strong> <strong>the</strong> risks of <strong>corruption</strong> in sport is insufficient in comparison with <strong>the</strong><br />

proliferation of sc<strong>and</strong>als linked <strong>to</strong> sports <strong>betting</strong>: “The first observation relates <strong>to</strong> <strong>the</strong> lack of <strong>to</strong>ols for<br />

underst<strong>and</strong>ing <strong>and</strong> assessing <strong>the</strong>se risks whilst at <strong>the</strong> same time, <strong>the</strong> media are increasingly frequently<br />

exposing instances of manipulation of sports fixtures that appear <strong>to</strong> be linked with <strong>betting</strong> activities<br />

<strong>and</strong> arouse serious misgivings as <strong>to</strong> <strong>the</strong> integrity <strong>and</strong> honesty of competitions” 4 .<br />

This first section presents three major instances of <strong>corruption</strong> in sport, <strong>the</strong>n produces a global typology<br />

of <strong>the</strong> phenomenon of <strong>corruption</strong> in sport <strong>to</strong> help underst<strong>and</strong> <strong>the</strong> modus oper<strong>and</strong>i of corrup<strong>to</strong>rs <strong>and</strong> <strong>the</strong><br />

vulnerabilities inherent in sport. A number of cases of <strong>corruption</strong> that have come <strong>to</strong> light in recent<br />

years are investigated <strong>and</strong> used <strong>to</strong> fill out <strong>the</strong> typology. The main instances primarily concern football,<br />

but also tennis, cricket <strong>and</strong> even basketball. This study will <strong>the</strong>refore focus on <strong>the</strong>se sports. Besides<br />

analysing <strong>the</strong> phenomenon of <strong>corruption</strong> in sport, <strong>the</strong> first section also investigates <strong>the</strong> globalisation of<br />

<strong>the</strong> sports <strong>betting</strong> market <strong>and</strong> seeks <strong>to</strong> ascertain <strong>the</strong> measure <strong>to</strong> which this may generate specific risks<br />

in respect of <strong>the</strong> integrity of sport.<br />

The second section of <strong>the</strong> white paper uses this typology of <strong>corruption</strong> in sport <strong>and</strong> <strong>the</strong> role of sports<br />

<strong>betting</strong> in <strong>the</strong> proliferation of fraud <strong>to</strong> carry out a critical analysis of <strong>the</strong> procedures used <strong>to</strong> combat<br />

fraud by <strong>the</strong> three key players in <strong>the</strong> sec<strong>to</strong>r: <strong>the</strong> sports movement, <strong>betting</strong> opera<strong>to</strong>rs <strong>and</strong> <strong>the</strong> public<br />

authorities. These three protagonists all have <strong>the</strong>ir own reasons for protecting <strong>the</strong> integrity of<br />

competitions. As we have already seen, <strong>the</strong> manipulation of results is damaging sports events <strong>and</strong><br />

undermining <strong>the</strong> values of modern sport. Also, sport is proving <strong>to</strong> be particularly helpless in <strong>the</strong> face<br />

of <strong>the</strong> transnational resources available <strong>to</strong> contemporary criminal organisations. The public authorities<br />

are concerned by <strong>the</strong> risk of sport being penetrated by those criminal organisations that use it <strong>to</strong><br />

launder <strong>the</strong> fruits of <strong>the</strong>ir activities with virtual impunity. Concern for public order is now combined<br />

with <strong>the</strong> need <strong>to</strong> <strong>preserve</strong> <strong>the</strong> image <strong>and</strong> place of sport in society as a force for social cohesion <strong>and</strong><br />

education for different generations. From <strong>the</strong> point of view of <strong>the</strong> <strong>betting</strong> opera<strong>to</strong>rs, which are<br />

sometimes swindled by corrup<strong>to</strong>rs placing fraudulent bets on <strong>the</strong>ir sites, <strong>the</strong> fight against fraud in sport<br />

is a necessity <strong>to</strong> safeguard <strong>the</strong>ir economic business <strong>and</strong> not become an accomplice in criminal<br />

activities. Like sport, corrupt <strong>betting</strong> is a threat <strong>to</strong> turn market because bet<strong>to</strong>rs are likely <strong>to</strong> be deterred<br />

if <strong>the</strong>y cannot trust <strong>the</strong> object of <strong>the</strong>ir bet as a fair contest.<br />

This white paper will describe <strong>the</strong> situation with <strong>the</strong> various programmes <strong>and</strong> resources already in<br />

place <strong>to</strong> combat <strong>corruption</strong> in sport at grassroots level <strong>and</strong> limit <strong>the</strong> appeal of sports <strong>betting</strong> for<br />

criminals. A list of recommendations is put forward <strong>to</strong> help establish a multilateral system that will<br />

optimise cooperation between <strong>the</strong>se three categories of stakeholders. The system must cover <strong>the</strong><br />

4 Jean-Francois Vilotte, "Preserver l Integrite et la Sincerite des Competitions Sportives Face au Developpement des Paris<br />

Sportifs en Ligne". Report <strong>to</strong> Mme. Chantal Jouanno, French Minister of Sport, delivered on 17 March 2011.<br />

7

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