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Have Betting Exchanges Corrupted Horse Racing?

Author

Listed:
  • Alasdair Brown

    (University of East Anglia)

  • Fuyu Yang

    (University of East Anglia)

Abstract

Betting exchanges allow punters to bet on a horse to lose a race. This, many argue, has opened up the sport to a new form of corruption, where races will be deliberately lost in order to profit from betting. We examine whether anecdotal evidence of the fixing of horses to lose - of which there are many examples - is indicative of wider corruption. We build an asymmetric information model of exchange betting, and take it to betting data on 9,560 races run in 2013/14. We find no evidence of the widespread corruption of horse racing by the betting exchanges.

Suggested Citation

  • Alasdair Brown & Fuyu Yang, 2014. "Have Betting Exchanges Corrupted Horse Racing?," University of East Anglia Applied and Financial Economics Working Paper Series 066, School of Economics, University of East Anglia, Norwich, UK..
    • Handle: RePEc:uea:aepppr:2012_66
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    References listed on IDEAS

    as
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