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Sport and Gambling

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  • David Forrest

Abstract

We review the relationships between gambling and sport. British sports and sports infrastructure have benefited considerably from funding through the National Lottery. We argue that there is an implicit sports tax on lottery products and that this policy may be neither efficient nor equitable. We suggest that further research, employing contingent valuation methodology, would be required before any firm conclusion could be made over whether the spending facilitated by the tax represents an efficient allocation of resources. Betting on events and outcomes in sport, especially team sports, has become a high-growth sector; we explore the potential for sports to capture some of this bettor spending and discuss associated public-policy issues. While sport may extract revenue from betting, there are also costs. We focus especially on betting corruption in sports, developing an expected utility framework to show where the risk of corruption is most likely to arise and what regulatory options are open to sports governing bodies and government. Copyright 2003, Oxford University Press.

Suggested Citation

  • David Forrest, 2003. "Sport and Gambling," Oxford Review of Economic Policy, Oxford University Press, vol. 19(4), pages 598-611, Winter.
  • Handle: RePEc:oup:oxford:v:19:y:2003:i:4:p:598-611
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    1. Christian Deutscher & Eugen Dimant & Brad R. Humphreys, 2017. "Match Fixing and Sports Betting in Football: Empirical Evidence from the German Bundesliga," Working Papers 17-01, Department of Economics, West Virginia University.
    2. Mao, Luke Lunhua & Zhang, James J. & Connaughton, Daniel P., 2015. "Sports gambling as consumption: Evidence from demand for sports lottery," Sport Management Review, Elsevier, vol. 18(3), pages 436-447.
    3. David Forrest, 2014. "Football and betting," Chapters,in: Handbook on the Economics of Professional Football, chapter 23, pages 383-400 Edward Elgar Publishing.
    4. Helmut Dietl & Christian Weingärtner, 2012. "Betting scandals and attenuated property rights - How betting related match fixing can be prevented in future," Working Papers 0154, University of Zurich, Institute for Strategy and Business Economics (ISU).
    5. Kent Grote & Victor Matheson, 2011. "The Economics of Lotteries: A Survey of the Literature," Working Papers 1109, College of the Holy Cross, Department of Economics.
    6. Wicker, Pamela & Prinz, Joachim & von Hanau, Tassilo, 2012. "Estimating the value of national sporting success," Sport Management Review, Elsevier, vol. 15(2), pages 200-210.
    7. Pamela Wicker & John C. Whitehead & Daniel S. Mason & Bruce K. Johnson, 2015. "Public support for hosting the Olympic Summer Games in Germany: The CVM approach," Working Papers 15-06, Department of Economics, Appalachian State University.
    8. Humphreys, Brad R. & Soebbing, Brian, 2012. "Sports betting, sports bettors and sports gambling policy," Edition HWWI: Chapters,in: Sport und Sportgroßveranstaltungen in Europa - zwischen Zentralstaat und Regionen, pages 15-37 Hamburg Institute of International Economics (HWWI).
    9. Hallmann, Kirstin, 2012. "Women's 2011 Football World Cup: The impact of perceived images of women's soccer and the World Cup 2011 on interest in attending matches," Sport Management Review, Elsevier, vol. 15(1), pages 33-42.
    10. Kent Grote & Victor Matheson, 2011. "The Economics of Lotteries: An Annotated Bibliography," Working Papers 1110, College of the Holy Cross, Department of Economics.
    11. Babatunde Buraimo & Giuseppe Migali & Robert Simmons, 2014. "An analysis of consumer response to corruption," Working Papers 64473209, Lancaster University Management School, Economics Department.
    12. Humphreys, Brad R. & Perez, Levi, 2012. "Who Bets on Sports? Characteristics of Sports Bettors and the Consequences of Expanding Sports Betting Opportunities/¿Quién apuesta? Características de los apostantes deportivos y consecuencias de la ," Estudios de Economía Aplicada, Estudios de Economía Aplicada, vol. 30, pages 579-598, Agosto.
    13. Brad R. Humphreys, 2017. "An Overview of Sports Betting Regulation in the United States," Working Papers 17-31, Department of Economics, West Virginia University.
    14. Hallmann, Kirstin & Breuer, Christoph & Kühnreich, Benedikt, 2013. "Happiness, pride and elite sporting success: What population segments gain most from national athletic achievements?," Sport Management Review, Elsevier, vol. 16(2), pages 226-235.
    15. O. Ashton Morgan & John C. Whitehead, 2015. "Willingness to Pay for Soccer Player Development in the United States," Working Papers 15-03, Department of Economics, Appalachian State University.

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