Corruption in sport

The Euros 2024 were the first in a list of long-awaited sporting events this summer, culminating with the 2024 Olympic Games in Paris. However, as sport becomes more global and its coverage expands, so does its exposure to the risk of corruption. Here we offer a preview of the way corruption manifests itself in sport, the impact it has on the stakeholders involved and the questions it raises about the need for (and the difficulties behind) potential reform.

Technological advances, globalisation and the quick growth of the e-sports betting industry are just some of the factors that contribute to the increased risk of illegal activity in sports, which is posing challenging questions for lawmakers, regulators, sport integrity bodies and participants alike.

The fraudulent manipulation of competitions (also known as match fixing) is at the forefront of the issue. At the end of last year, the UN Office on Drugs and Crime (UNODC) estimated that illegal betting is the number one factor fuelling corruption in sports, with illegal bets adding up to approximately USD $1.7 trillion each year. It is unsurprising that the surge of match fixing is closely related to the expansion of the betting and gambling industry. As the sport industry grows, so does the business of betting on sport: revenue in the online sports betting market is projected to reach USD $45.94 billion in 2024, with the number of users expected to grow to 180.8 million by 2029.

Betting regulators and national governing bodies may be quick to react, but they face an uphill challenge: the breadth of data sharing online often makes it difficult to identify and effectively tackle illegal activity in the e-sports space. This also poses a deeper question of whether the current legal and regulatory regime is fit to tackle the modern ways in which corruption manifests online. Speaking at the December 2023 UNODC conference in Atlanta, James Porteous, Research Head of the Asian Racing Federation Council on Anti-Illegal Betting and Related Financial Crime warned that the regulations currently in place may not be fit for the online space. This begs the question of whether wider reaching reform is needed to the anti-corruption rules.

illegal betting is the number one factor fuelling corruption in sports, with illegal bets adding up to approximately USD $1.7 trillion each year

The issue of corruption in sports also bleeds into the realm of sports integrity. It is not just bookmakers, punters and money launderers that participate in match fixing, but also sport participants themselves. Spot-fixing, a practice whereby a participant agrees to influence a certain part of a match (for example, by committing a foul in football or throwing a no-ball in cricket), is evidence that corruption may happen on the pitch as well. When in May of this year, Lucas Paqueta was charged by the FA with four separate instances of spot-fixing, in which it is alleged that he intentionally sought to receive yellow cards, the FA statement announcing the charge also included the allegation that Paqueta’s spot-fixing was for “the improper purpose of affecting the betting market in order for one of more persons to profit from betting”. Paqueta has stated that he denies the charges, and the ultimate outcome of the proceedings will be a matter of significant interest and scrutiny.

Spot-fixing is a form of coordinated conduct (indeed in this instance, it has been widely reported that the investigation started due to the volume of bets placed on Paqueta receiving a card from accounts in Brazil, rather than any betting activity by the participant himself), which makes it more difficult to identify and target. It is therefore crucial that when considering taking action, sports integrity bodies like the International Betting Integrity Association (IBIA) and the Athletics Integrity Unit (AIU) work effectively with national governing bodies to tackle the issue.

Lastly, corruption in sports can have a ripple effect to the reputation of the sport itself. Sponsorship, broadcasting, and marketing partnerships play a huge part in the matrix of the sports business, and they depend on the reputation of the game and its participants. Illegal activity is likely to affect the way sponsors and other commercial actors approach the question of investing in sports. The fans’ experience, as a necessary ingredient of the profitability of sports, is similarly likely to be impacted by the rise of corruption in this area.

As the marquee sporting events continue to get underway this summer, national governing bodies, betting regulators and law enforcement are likely to be pressed for an answer to the question of how to effectively confront corruption in sport. As the different stakeholders navigate this challenge, we will be following closely.