Sports betting and corruption: How to preserve the - SportAccord

Sports betting and corruption: How to preserve the integrity of sport
It should however be noted that sports bodies property rights can be put in the same category as
intellectual property rights, which - as things stand - enables professional sport to be financed in
proportion to the dynamism of betting on specific disciplines. Given the disparity in the profits of
different sports, the question arises as to whether there should be a redistribution of funds to
disciplines that are less well-provided for, to guard against corruption. It does also seem important to
adopt the principle of systematically using funds raised through sports bodies property rights to
benefit the integrity of sports.
Finally, it would be worth giving some consideration to the opportunity of financing amateur sport,
whether through sports bodies property rights (using a system of redistribution) or in a different way,
by establishing a systematic contribution by operators. Lotteries, which traditionally finance amateur
sport, are nowadays competing against private operators that are not subject to the same type of
process, which tends to reduce the resources devoted to supporting amateur sport. Hence the relevance
of this type of reflection.
The issue of modes of betting that generate risks
The emergence and growth of live (or in-play ) betting generates specific risks: firstly, it is not easy
to control in real time, secondly, some types of bet are easier to manipulate, and thirdly betters can -
and do - adapt their behaviour in line with variations in the market odds. Some criminals are suspected
of influencing matches directly from the side of the pitch by using various codes. Live betting also
raises the issue of the risk of addiction. Its practice is closer to the concept of a game of chance and to
some extent deviates from a betting culture based on sporting expertise or supporting a team.At first
sight it would appear difficult to prohibit live betting despite these risks and abuses, as it currently
represents over 2/3 of the sports betting market. It is nevertheless desirable to regulate it carefully and
supervise it closely. The success of this approach depends on having ultra-sophisticated and
instantaneous management tools. This increased control of the sports betting market must be extended
to the pitchside to ensure the integrity of the behaviour of those involved in sport and check that they
are not subject to external influences, either on the margins or during matches.
Exchange (or aggregation) betting, which is prohibited in France, also presents specific risks. Firstly
the fact of being able to bet against an event or a team arouses ethical issues, particularly in relation
to the fundamental values of sport connected with fair play and respecting one s opponent. Secondly, a
gambler can assume the role of either backer or operator with equal ease, which enables arbitrage
techniques similar to those in the financial markets, and all the more so because this type of betting
delivers the highest rates of return to players to be found in the sports betting market (often above
97%). Even apart from the risk of money-laundering that it is likely generate, exchange betting is a
specific type of betting that enables gamblers to win every time , because they can hedge their risk
by placing an appropriate bet in case an attempt at corruption fails. Exchange betting also allows
gamblers to speculate on rumours of corruption or insider offences by betting on variations in the odds
for an event.
More generally, regulating the offering comes back to the issue of who benefits. The sports betting
market is a bidding market, as evidenced by its growth during recent years. Demand tends to be
dominated by professional gamblers who are addicted to this activity and follow a rationale of
financial placements that can be compared to trading on the stock exchange. Their aim is to take
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