Which factors favor betting related cheating in sports? Some insights from political economy

Abstract

In recent years, cheating scandals connected with betting activity have shown to be a major concern for professional sports. From an economic point of view, such scandals threaten the integrity of sport and put the whole commercialization of this good (regarding e.g. sponsoring, broadcasting) in danger. This chapter the incentives for cheating connected to traditional and new bet types in the sports betting sector and how they might affect the behaviur of sportsmen, coaches, and officials. We develop a simple theoretical model and derive from it some political implications which we recommend, among others, for the ongoing reform of the German sports betting market. Our recommendations should contribute to an effective prevention of scandals like those unveiled in European football in the last years.