Are Our Sports Games Fixed?

Internet gambling is expected to rake in revenues of over $20 billion in 2008.  Add to that the amount of illegal wagering accounting for approximately $150 billion in the United States, it’s no wonder more and more sporting events are falling under suspicion of being fixed.  This is not an isolated incident with scandals popping up from tennis to cricket to soccer to American football.  And according to many of the major sports’ governing bodies, we may only be seeing the tip of the ice berg.

Interestingly enough, irregularities in sports event wagering was first noticed by Betfair, one of the many online sports betting websites on the market.  They have revolutionized the way sports betting is done, allowing members to wager against each other, in real time, and even allowing them to place wagers after the event has begun.  They have been the driving force behind investigations into a variety of sporting events.

“You're at risk of being victimized by inside information if you're playing these markets," said David Forrest, an economics professor at the University of Sanford in England. "While Internet gambling has offered transparency, it has brought temptation as well. There's greater liquidity for the cheats, and new forms of wagering with more money than ever before. There are more incentives for athletes or officials to manipulate or fix a game."

Thanks to the recent rash of sports betting irregularities in the tennis world, there is now a movement sweeping the international sporting community to start an anti-corruption movement similar to the World Anti-Doping Agency.  The idea has received very positive support from most of the major sports agencies in Europe.  According to Justin Wolfers, a professor of business and public policy at the University of Pennsylvania, “Insider trading is a bigger deal in sports than in the financial markets.  We have the Securities and Exchange Commission here. Why not the same for what is a multibillion-dollar sports gambling market?”

Betfair has taken on the role of watchdog when it comes to sports betting.  So far, the site has made agreements with 32 different sports governing agencies and is looking for more to provide them their real time notification about strange betting activity.  They have a complete audit trail on every member of their site and if need be will use it in any illegal betting operation.  

Many others have already refused Betfair’s offer, though, citing that they are just as open to illegal betting and manipulation as every other sports betting website.  The question now becomes, how do we watch out for illegal betting, insider information in sports, and match-fixing?