Match-fixing is undoubtedly one of the biggest challenges faced by modern sports. The increasing visibility and the volume of money involved in sports competitions have made the integrity of these competitions a target for illicit activities.
In recent meetings of the CPI (Parliamentary Inquiry Committee) on Match-Fixing and Sports Betting, some Senators questioned whether betting houses were reporting suspicions of match-fixing.
This questioning implies a debate on whether betting houses are guilty of omission or victims of match-fixing crimes.
This article aims to analyze this issue, highlighting the need for coordinated action among all stakeholders in the sports market to combat this threat.
The impact of match-fixing
Match-fixing is a direct attack on the unpredictability of sports. When the result of a match or competition is manipulated, the trust of fans, athletes, and other participants in the sports system is profoundly shaken. Sports, as a product, lose their value, and spectators stop watching when there is no longer an expectation of unpredictability.
Over time, this domino effect leads to a progressive decrease in people’s interest in sports. Naturally, this negatively impacts all sectors of the sports industry, including ticket sales, broadcasting rights, and merchandising, for example.
In this scenario, therefore, investors tend to distance themselves from a product that is no longer reliable, making it less attractive from an economic standpoint. Sports sponsors seek positive returns in terms of image and credibility; when these characteristics are compromised, withdrawal is almost inevitable.
Betting houses: victims of match-fixing
In the scenario of complete loss of credibility in sports caused by match-fixing, could betting houses benefit in any way? It seems unreasonable to believe so. On the contrary, betting houses appear to be victims of this criminal practice as well.
In the short term, companies will be forced to pay out bets made at odds higher than they would naturally be, based on a fabricated event.
In the long term, without honest and reliable sports, bettors will naturally lose interest in participating in the betting market. Companies rely heavily on the integrity and unpredictability of sports to operate. When this trust is undermined, the betting market suffers a significant negative impact; any form of manipulation destroys the essence of the betting market, which is the uncertainty of the outcome.
The importance of integrity in sports
The betting market is enormous and has impressive growth potential. According to Statista, a global data and business intelligence platform, the economic impact of gambling on national economies was astronomical from 2020 to 2024. The global online gambling market alone is expected to generate an impressive US$97.70 billion by the end of 2024, with an annual growth rate of 6.46%, which should see the market volume reach US$133.60 billion by 2029.
However, this growth is directly tied to the integrity of sports; the match-fixing scenario threatens this entire market. The integrity of sports must be a priority for all involved in the sports market, including betting houses. Only the manipulators benefit from match-fixing; all other stakeholders in the sports market lose.
Regulation of the market and establishment of reporting procedures for match-fixing suspicions
Serious sports betting companies wish to operate in Brazil within a regulated market; combating match-fixing is much more effective in a regulated market where the state can implement and enforce clear rules that ensure transparency and integrity in betting.
Regulation allows for stricter oversight and the implementation of preventive measures, such as monitoring suspicious betting patterns and collaboration among different stakeholders.
For sports betting companies to increase their collaboration with authorities in combating match-fixing, clear procedures for reporting suspicions need to be established. This includes, for example, defining responsibility; clearly outlining the roles of operators and public authorities. A well-defined system of responsibilities ensures that all stakeholders know exactly what is expected of them and their obligations.
Additionally, it is crucial to establish a response timeline for reported suspicions. Specific deadlines for actions to be taken regarding match-fixing suspicions help ensure transparency and ensure that issues are addressed efficiently. A lack of a clear deadline can lead to delays in investigation and resolution, potentially allowing manipulation to continue undetected.
Above all, it is necessary to ensure the protection of whistleblowers: ensuring that those who report suspicions are protected against any form of retaliation. Dealing with crime and criminal organizations makes reporting match-fixing suspicions without clear procedures a significant risk.
Collective responsibility
Addressing match-fixing requires a collective approach. Athletes, coaches, administrators, sponsors, fans, and betting houses need to be united in the fight against this harmful practice. Only through coordinated effort will it be possible to preserve the integrity of sports and ensure that it remains an unpredictable and exciting spectacle for all involved.
Sports administration entities and public authorities must implement strict policies and severe sanctions against those involved in match-fixing. Educating athletes and all involved about the risks and consequences of match-fixing is also crucial. Transparency and cooperation among all parties are key to building a safe and fair sports environment.
Conclusion
The notion that betting houses are somehow complicit in match-fixing is misguided and illogical. They are, in fact, victims of this practice, just like the rest of the sports market. The only way to tackle this challenge is through a joint effort involving all stakeholders in the sports market, from athletes and fans to sponsors and betting houses.
Only with a coordinated effort will it be possible to preserve the integrity of sports and ensure it continues to be an unpredictable and thrilling spectacle for everyone involved. It is essential to establish clear reporting mechanisms for match-fixing suspicions.
The implementation of effective and secure communication channels not only facilitates reporting but also ensures the protection of whistleblowers who, by standing up against illicit practices, must be supported and protected against retaliation. Creating an environment based on transparency and collective responsibility is fundamental to strengthening trust in the sports system and, consequently, preserving the essence of sports.
Fernanda Soares
Attorney, Master in Sports Law from Pontifical Catholic University of São Paulo (PUC/SP), Specialist in Sports Business from the Center for Studies in Law and Business (CEDIN/MG). Partner at AK Direito na Comunicação e no Esporte, leader in Privacy and Personal Data Protection. Member of the Sports Law Commission of the Brazilian Bar Association (OAB) Section Minas Gerais (OAB/MG). Collaborating member of the Sports Law Commission of the Brazilian Bar Association (OAB) Section Espírito Santo (OAB/ES).