1. RISKS TO THE INTEGRITY OF SPORT FROM BETTING CORRUPTION RESPONSIBLE GAMBLING DAY, FEBRUARY, 2009

2. Introduction Concern over corruption is increasing amongst sports governing bodies. By borrowing from a model for the economics of crime, thought can be focussed on why concern is growing and what types of situation pose most risk. In the case of sport the individual athlete or official is thought of as comparing the costs and benefits of choosing to accept a bribe. The benefit relates to the money on offer from a betting syndicate while the costs include potential loss of earnings from suspension if found out, loss of sporting glory through underperformance and moral unease. As the betting environment changes, so will the expected benefit and costs and therefore the willingness of sportsmen to accept bribes will go up or down.

3. Changes in the betting environment Increased liquidity: Money can be pumped into the market without detection. Increased competition: Bettors now have access to bookmaker websites located around the world and bookmakers are forced to offer better deals. Modes of betting: Betting exchanges give the opportunity to lay as well as back. Rise of in-play betting/rise of proposition bets: Both pose new risks to sport because bets can be won without having to lose the match. For example, in tennis if you know that the favourite will lose the first set, you can bet against (lay) him before the match and back him after the first set and lock into a guaranteed profit irrespective of final result.

4. Predictions from the model- risky situations High liquidity relative to pay levels Subject of bet easy to fix by one person Subject of bet does not involve a different final outcome to the event (e.g. losing instead of winning) Situations where below-par performances are not suspicious in themselves

5. Policy response to corruption Governments- complete prohibition? Unlikely to succeed as bettors can seek out illegal markets. Regulators- prohibit some types of bet and betting? Difficult to restrict domestic access to international markets. Manipulation of European sporting events may originate outside the jurisdiction and betting markets elsewhere may be used. Given these obstacles faced by national gaming regulators, it is likely the burden of policy to control corruption will fall on sport itself.