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Sport and Gambling

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  • David Forrest

Abstract

We review the relationships between gambling and sport. British sports and sports infrastructure have benefited considerably from funding through the National Lottery. We argue that there is an implicit sports tax on lottery products and that this policy may be neither efficient nor equitable. We suggest that further research, employing contingent valuation methodology, would be required before any firm conclusion could be made over whether the spending facilitated by the tax represents an efficient allocation of resources. Betting on events and outcomes in sport, especially team sports, has become a high-growth sector; we explore the potential for sports to capture some of this bettor spending and discuss associated public-policy issues. While sport may extract revenue from betting, there are also costs. We focus especially on betting corruption in sports, developing an expected utility framework to show where the risk of corruption is most likely to arise and what regulatory options are open to sports governing bodies and government. Copyright 2003, Oxford University Press.

Suggested Citation

  • David Forrest, 2003. "Sport and Gambling," Oxford Review of Economic Policy, Oxford University Press and Oxford Review of Economic Policy Limited, vol. 19(4), pages 598-611, Winter.
    • Handle: RePEc:oup:oxford:v:19:y:2003:i:4:p:598-611
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    References listed on IDEAS

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    Cited by:

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    2. Rodney J. Paul & Andrew P. Weinbach, 2011. "Investigating Allegations of Pointshaving in NCAA Basketball Using Actual Sportsbook Betting Percentages," Journal of Sports Economics, , vol. 12(4), pages 432-447, August.
    3. 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.
    4. Babatunde Buraimo & Giuseppe Migali & Robert Simmons, 2016. "An Analysis of Consumer Response to Corruption: Italy's Calciopoli Scandal," Oxford Bulletin of Economics and Statistics, Department of Economics, University of Oxford, vol. 78(1), pages 22-41, February.
    5. Mao, Luke Lunhua & Zhang, James J. & Connaughton, Daniel P., 2015. "Sports gambling as consumption: Evidence from demand for sports lottery," Sport Management Review, Elsevier, vol. 18(3), pages 436-447.
    6. David Forrest, 2014. "Football and betting," Chapters, in: John Goddard & Peter Sloane (ed.), Handbook on the Economics of Professional Football, chapter 23, pages 383-400, Edward Elgar Publishing.
    7. 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).
    8. Kent Grote & Victor Matheson, 2011. "The Economics of Lotteries: A Survey of the Literature," Working Papers 1109, College of the Holy Cross, Department of Economics.
    9. Wicker, Pamela & Prinz, Joachim & von Hanau, Tassilo, 2012. "Estimating the value of national sporting success," Sport Management Review, Elsevier, vol. 15(2), pages 200-210.
    10. Reynald Lastra & Peter Bell & Christine Bond, 2016. "Sports Betting-Motivated Corruption in Australia: An Under-Studied Phenomenon," International Journal of Social Science Research, Macrothink Institute, vol. 4(1), pages 61-82, March.
    11. Daniel Weimar & Markus Schauberger, 2018. "The impact of sporting success on student enrollment," Journal of Business Economics, Springer, vol. 88(6), pages 731-764, August.
    12. Pamela Wicker & John C Whitehead & Daniel S Mason & Bruce K Johnson, 2017. "Public support for hosting the Olympic Summer Games in Germany: The CVM approach," Urban Studies, Urban Studies Journal Limited, vol. 54(15), pages 3597-3614, November.
    13. Humphreys, Brad R. & Soebbing, Brian, 2012. "Sports betting, sports bettors and sports gambling policy," Edition HWWI: Chapters, in: Büch, Martin-Peter & Maennig, Wolfgang & Schulke, Hans-Jürgen (ed.), Sport und Sportgroßveranstaltungen in Europa - zwischen Zentralstaat und Regionen, volume 4, pages 15-37, Hamburg Institute of International Economics (HWWI).
    14. Thomas Giel & Sören Dallmeyer & Daniel Memmert & Christoph Breuer, 2023. "Corruption and Self-Sabotage in Sporting Competitions – An Experimental Approach to Match-Fixing Behavior and the Influence of Deterrence Factors," Journal of Sports Economics, , vol. 24(4), pages 497-525, May.
    15. Hallmann, Kirstin, 2012. "Women's 2011 Football World Cup: The impact of perceived images of women's soccer and the World Cup 2011 on interest in attending matches," Sport Management Review, Elsevier, vol. 15(1), pages 33-42.
    16. Kent Grote & Victor Matheson, 2011. "The Economics of Lotteries: An Annotated Bibliography," Working Papers 1110, College of the Holy Cross, Department of Economics.
    17. Babatunde Buraimo & Giuseppe Migali & Robert Simmons, 2014. "An analysis of consumer response to corruption," Working Papers 64473209, Lancaster University Management School, Economics Department.
    18. Humphreys, Brad R. & Perez, Levi, 2012. "Who Bets on Sports? Characteristics of Sports Bettors and the Consequences of Expanding Sports Betting Opportunities/¿Quién apuesta? Características de los apostantes deportivos y consecuencias de la ," Estudios de Economia Aplicada, Estudios de Economia Aplicada, vol. 30, pages 579-598, Agosto.
    19. Hallmann, Kirstin & Breuer, Christoph & Kühnreich, Benedikt, 2013. "Happiness, pride and elite sporting success: What population segments gain most from national athletic achievements?," Sport Management Review, Elsevier, vol. 16(2), pages 226-235.
    20. O. Ashton Morgan & John C. Whitehead, 2018. "Willingness to Pay for Soccer Player Development in the United States," Journal of Sports Economics, , vol. 19(2), pages 279-296, February.
    21. Patrick Feehan & David Forrest, 2007. "Distribution of UK National Lottery grants across local authority areas," Applied Economics Letters, Taylor & Francis Journals, vol. 14(5), pages 361-365.
    22. Brad R. Humphreys, 2017. "An Overview of Sports Betting Regulation in the United States," Working Papers 17-31, Department of Economics, West Virginia University.

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