In the CPI meetings on Game and Betting Manipulation, some senators questioned the fact that operators were not reporting suspicions of match-fixing. This questioning leads to the debate on whether the betting houses are guilty of omission or victims of the crime of result manipulation. This article by Fernanda Soares, partner at AK Law in Communication and Sports, seeks to analyze the topic.
Result manipulation is undoubtedly one of the biggest challenges faced by modern sports. The increasing visibility and the amount of money involved in sports competitions have made the integrity of these competitions a target for illicit activities.
In recent meetings of the CPI on Game and Sports Betting Manipulation, some senators questioned the fact that betting houses were not reporting suspicions of result manipulation.
This questioning leads to the debate on whether the betting houses are guilty of omission or victims of the crime of match-fixing. This article seeks to analyze this issue, highlighting the need for coordinated action among all sports market players to combat this threat.
The impact of result manipulation
Result manipulation is a direct attack on the unpredictability of sports. When the outcome of a match or competition is manipulated, the confidence of fans, athletes, and other members of the sports system is deeply shaken. The sport, as a product, loses its value and the viewer stops watching it when there is no longer an expectation of unpredictability.
What is seen in the long term is the progressive decrease in people's interest in sports. Naturally, this domino effect negatively affects all sectors of the sports industry; this includes everything from ticket sales to 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. Sponsors in sports seek positive image returns and credibility; these characteristics are compromised and the distancing is almost inevitable.
Betting houses: victims of manipulation
In the scenario of complete loss of credibility in sports caused by result manipulation, could the houses gain anything? It does not seem reasonable to think so. On the contrary, betting houses also appear to be victims of this criminal practice.
In the short term, companies will be forced to pay a bet made at an odd higher than what would naturally be, based on a fabricated event.
In the long term, without an integral and reliable sport, bettors naturally lose interest in participating in the betting market. Companies heavily depend on the integrity and unpredictability of sports to operate.
When this trust is shaken, 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 huge and has an 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 $97.7 billion by the end of 2024, with an annual growth rate of 6.46%, which should bring the market volume to $133.6 billion by 2029.
This growth, however, is directly linked to the integrity of sports; the scenario of result manipulation threatens the entire market. The integrity of sports must be a priority for all those involved in the sports market, including betting houses.
Only those who manipulate results benefit; all other sports market players lose.
Regulation of the market and establishment of procedures for reporting suspicions of result manipulation
Serious sports betting companies wish to operate in Brazil in a regulated market; combating result manipulation is much more effective in a regulated market, where the State can implement and enforce clear rules that ensure the transparency and integrity of betting.
Regulation allows for stricter supervision and the application of preventive measures, such as monitoring patterns of suspicious betting and collaboration between different stakeholders.
For sports betting companies to increase collaboration with authorities in combating result manipulation, it is necessary to establish clear procedures for reporting result manipulation.
This includes, for example, defining responsibilities; clearly defining what the functions of the operators are and what the functions of the public authorities are. A well-defined system of responsibilities ensures that all stakeholders know exactly what is expected of them and what their obligations are.
In addition, it is crucial to establish a response time for reported suspicions. Specific deadlines for the actions that will be taken on suspicions of manipulation help ensure transparency and ensure that issues are dealt with efficiently. The lack of a clear deadline can lead to delays in investigation and resolution of cases, which can allow manipulation to continue undetected.
Above all, however, it is necessary to ensure the protection of whistleblowers: ensuring that those who report suspicions are protected against any type of retaliation. Dealing with crime and criminal organizations makes the act of reporting suspicions of result manipulation without clear procedures a significant risk.
The collective responsibility
Addressing result manipulation 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 a coordinated effort will it be possible to preserve the integrity of sports and ensure that it continues to be an unpredictable and exciting spectacle for all involved.
Sports administration entities and public authorities must implement strict policies and severe sanctions against those who participate in result manipulation. Educating athletes and all those involved about the risks and consequences of manipulation is also crucial. Transparency and cooperation among all parties are fundamental to building a safe and fair sports environment.
Conclusion
The view that betting houses are, in some way, accomplices in result manipulation is misguided and does not make logical sense. They are, in fact, victims of this practice, just like the rest of the sports market. The only way to face this challenge is through a joint action that involves all sports market players, 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 that it continues to be an unpredictable and exciting spectacle for all involved. It is essential to establish clear mechanisms for reporting suspicions of result manipulation.
The implementation of effective and secure communication channels not only facilitates reporting but also ensures the protection of whistleblowers who, by positioning themselves against illicit practices, must be supported and protected against retaliation.
Creating an environment governed by transparency and collective responsibility is fundamental to strengthening confidence in the sports system and, consequently, preserving the essence of sports.
Fernanda Soares
Partner at AK Law in Communication and Sports
