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Betting scandals and attenuated property rights - How betting related match fixing can be prevented in future

Author

Listed:
  • Helmut Dietl

    () (Institute for Strategy and Business Economics, University of Zurich)

  • Christian Weingärtner

    () (Institute for Strategy and Business Economics, University of Zurich)

Abstract

Recently, a number of high-profile betting scandals have shocked European football. Since such scandals threaten the integrity of the sport, which is one of its major assets, football officials have taken prominent measures to avoid further scandals. Unfortunately, these measures have not yet been successful. Additional or different measures seem to be necessary to protect the integrity of the sport. In this paper we analyze the economic causes of betting scandals from a property rights perspective. The analysis consists of three parts. First, we show that after a continuous attenuation of property rights over the last decades, football fixtures and results today are a costless input for the business model of the large industry of bookmakers and betting platforms. In the second part, we explain the economic responses of the betting industry to the property rights attenuation and the resulting facilitation of betting scandals. In the third part, we evaluate three alternative solutions to the problem: taxation, regulation, and property rights allocation and enforcement. The third approach is especially promising and has been successfully used in other industries as well.

Suggested Citation

  • 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).
  • Handle: RePEc:iso:wpaper:0154
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    File URL: http://repec.business.uzh.ch/RePEc/iso/ISU_WPS/154_ISU_full.pdf
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    References listed on IDEAS

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    1. Baumol, William J, 1972. "On Taxation and the Control of Externalities," American Economic Review, American Economic Association, vol. 62(3), pages 307-322, June.
    2. Ian Preston, 2003. "Cheating in Contests," Oxford Review of Economic Policy, Oxford University Press, vol. 19(4), pages 612-624, Winter.
    3. David Forrest, 2003. "Sport and Gambling," Oxford Review of Economic Policy, Oxford University Press, vol. 19(4), pages 598-611, Winter.
    4. Laffey, Des, 2005. "Entrepreneurship and Innovation in the UK Betting Industry:: The Rise of Person-to-Person Betting," European Management Journal, Elsevier, vol. 23(3), pages 351-359, June.
    5. Raymond D. Sauer, 1998. "The Economics of Wagering Markets," Journal of Economic Literature, American Economic Association, vol. 36(4), pages 2021-2064, December.
    6. Davies, Mark & Pitt, Leyland & Shapiro, Daniel & Watson, Richard, 2005. "Betfair.com:: Five Technology Forces Revolutionize Worldwide Wagering," European Management Journal, Elsevier, vol. 23(5), pages 533-541, October.
    7. David Paton & Donald S. Siegel & Leighton Vaughan Williams, 2002. "A Policy Response To The E--Commerce Revolution: The Case Of Betting Taxation In The UK," Economic Journal, Royal Economic Society, vol. 112(480), pages 296-314, June.
    8. Justin Wolfers, 2006. "Point Shaving: Corruption in NCAA Basketball," American Economic Review, American Economic Association, vol. 96(2), pages 279-283, May.
    9. Bag, Parimal Kanti & Saha, Bibhas, 2011. "Match-fixing under competitive odds," Games and Economic Behavior, Elsevier, vol. 73(2), pages 318-344.
    10. Julie Smith, 2000. "Gambling Taxation: Public Equity in the Gambling Business," Australian Economic Review, The University of Melbourne, Melbourne Institute of Applied Economic and Social Research, vol. 33(2), pages 120-144.
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    Cited by:

    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. David Forrest, 2014. "Football and betting," Chapters,in: Handbook on the Economics of Professional Football, chapter 23, pages 383-400 Edward Elgar Publishing.

    More about this item

    Keywords

    Property Rights; Attenuation; Betting; Scandal; Match fixing; Corruption;

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