International Journal of Social Science Research

ISSN 2327-5510
2016, Vol. 4, No. 1

Sports Betting-Motivated Corruption in Australia: An

Under-Studied Phenomenon
Reynald Lastra
School of Criminology and Criminal Justice, Griffith University
176 Messines Ridge Road, Mt Gravatt Qld 4122, Australia
E-mail: [email protected]

Peter Bell (Corresponding author)

School of Criminology and Criminal Justice, Griffith University
176 Messines Ridge Road, Mt Gravatt Qld 4122, Australia
Tel: 61-7-3735-1131 E-mail: [email protected]

Christine Bond
School of Criminology and Criminal Justice, Griffith University
176 Messines Ridge Road, Mt Gravatt Qld 4122, Australia
Tel: 61-7-555-27040 E-mail: [email protected]

Received: November 11, 2015 Accepted: December 8, 2015 Published: January 4, 2016
doi:10.5296/ijssr.v4i1.8563 URL: http://dx.doi.org/10.5296/ijssr.v4i1.8563

Abstract
With the continual rise of gambling methods there is a need to better understand sports
betting-motivated corruption in the Australian context. This literature review highlights seven
predominant themes: the Australian gambling culture, betting opportunities available, the
threat of sports betting to the integrity of sport, corruption in sport, involvement of
transnational organized crime groups in sports corruption, the theoretical perspectives used in
sports corruption research, and anti-corruption strategies which are important in the
prevention and law enforcement of this criminal behavior. The review identifies significant
gaps in existing knowledge surrounding sports betting-motivated corruption, highlighting the
need for further research in this area.

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Keywords: corruption, sports betting, gambling, law enforcement, sports integrity

1. Introduction
Gambling, also known as ‘gaming’, is a popular recreational activity inherent in various
cultures all over the world, particularly in Australia (Pinto & Wilson, 1990), that involves
betting something of value such as money on an event such as a game where its result is
random and based on chance (George & Chima, 2014). With sport having a long association
with gambling it is no surprise that sports betting-motivated corruption is becoming a topic
for discussion, with gambling in particular being found to have a negative influence on sport
integrity (Forrest & Simmons, 2003). This review considered a wide range of sources,
including scholarly articles, government reports, organizational reports, books and other
relevant sources, to explore current knowledge on the phenomenon, particularly in an
Australian context. In doing so the review identified seven predominant themes discussed
in this paper and identified a need for further research on the topic.
1.1 The Australian Gambling Culture
In support of the notion that Australia is a gambling nation (Delfabbro & King, 2012)
reported that up to 80% of Australians will participate in gambling at least once in their
lifetime. Furthermore, H2 Gambling Capital ranked Australians as the biggest gamblers in the
world in 2013 when measured in terms of loss per capita (The Economist, 2014). Overall, the
total expenditure on gambling was estimated at approximately AU$19 billion for the period
of 2008-2009 (Productivity Commission, 2010).
Impacting on Australia’s gambling culture are the various avenues of gambling being offered,
such as lotteries, electronic gaming machines or ‘pokies’, betting (racing and sport), and table
games (Worthington, Brown, Crawford, & Pickernell, 2007). These forms of gambling are
offered within two types of gambling environments: interactively and in-person (Gainsbury,
2014). Interactive gambling involves the use of the Internet to access gambling activities
through interactive media such as computers, smart phones, tablets and smart televisions
(Gainsbury et al., 2015). Gambling in person involves land-based outlets and placing bets
over the telephone directly with bookmakers. Whilst gambling in person is still a popular
method of gaming, interactive gambling is growing rapidly and is predicted to overtake the
traditional method of gambling in person (Gainsbury, 2014).
2. Sports Betting
The relationship between gambling and sport has always existed and, historically, many
sports have been affected and influenced by the gambling industry. In the eighteenth century
betting was a key influence in the development of formal structures in sport (Forrest &
Simmons, 2003). For instance, bookmakers influenced the codification of cricket’s rules in
1744 to ensure uniformity in rules across matches, as well as introducing a governing body to
resolve disputes on the payment of bets. While this may have been a step forward in cricket
and sports in general the presence of gambling has been found to negatively impact the
integrity of sport (Forrest & Simmons, 2003).

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2.1 The Rise of Sports Betting

A significant concern surrounding the issue of sport integrity is the exponential growth of the
sports betting industry. Since the mid-1990s the development of the Internet and the rise of
interactive media have been significant catalysts in the growth of the gambling industry, and
more specifically the sports betting trade (Humphreys, 2011; Reiche, 2013). The rapid growth
of sports betting can largely be attributed to a readily accessible global betting market (ACC,
2013). Humphreys (2011) proffers that punters are no longer confined to the domestic market
and are now able to bet on any number of sports, played anywhere in the world. However, the
issue with the global betting market is that punters now have the option to access both
unregulated offshore bookmakers and highly-regulated providers who operate within the
domestic market (ACC, 2013). The implications of this are that unregulated markets could be
used to facilitate criminal activity, which in turn negatively affects the integrity of sport in
Australia. This globalization of sports betting, however, has led to its exponential growth,
with sports betting being recognized as the fastest growing sector of the Australian gambling
market. For instance, the Australian Crime Commission (ACC) (2013) states that sports
betting in Australia alone has increased by 278% from AU$880 million in 2000-01 to AU$3.3
billion in 2010-11.
2.1.1 Sports Sponsorship and Sports Betting
Supplementary to the growth of sports betting is the sponsorship of sport by betting agencies
(Hing, Vitartas, & Lamont, 2013). Research on sports sponsorship suggests that the
dependency of sport on income provided by the betting industry is increasing. For instance, a
study of sports sponsorship among national, regional and local club-level sports in New
Zealand in 2006 found that the gambling industry is the most prominent sponsor of sport at
every level from junior to national tiers (Maher, Wilson, Signal, & Thomson, 2006). Maher et
al. (2006) argue that sport sponsorship by betting agencies in turn allows them to associate
betting with a popular community-based activity. This creates a positive community response
to their organization and its activities. A study conducted by Mason (2005) found that when
the public view sponsorship as the reason for a sporting event’s existence they are more likely
to accept and support the sponsor’s products. Hing et al. (2013) state that sports sponsorship
by bookmakers and the promotion of their products at matches may be normalizing gambling,
as well as fostering gambling problems. Milner, Hing, Vitartas and Lamont (2013) shared a
similar position, stating that gambling sponsorship and its heavy marketing strategies are
fuelling the growth of sports betting and inadvertently inviting corruption in sports.
2.1.2 Promotion of Sports Betting
The promotion of sports betting products through aggressive marketing on television and
through social media platforms is another significant factor in the growth of the betting
industry (Thomas, Lewis, Duong, & McLeod, 2012). The degree of sophistication of sports
betting-related marketing is much greater than the typical advertising on television and on the
Internet. The marketing of betting services during sporting events consists of commercial
contracts between a number of stakeholders, including: the betting industry, sporting codes,
stadiums, scoreboard operators, broadcasters, and individual clubs (Thomas et al., 2012). A

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study of sports betting advertising during Australian Football League (AFL) matches by
Thomas et al. (2012) found that the marketing approaches explored by bookmakers
embedded the activity within the game itself by linking sports betting with the spectator’s
experience and encouraging live betting. The study also found that there was an increase in
the amount of positive messages surrounding gambling during matches, with minimal
advertising of responsible gambling. The marketing strategies employed by bookmakers
clearly targets spectators and, in particular, the most vulnerable demographic to gambling
problems, young people (McMullan, Miller, & Perrier, 2012; Tse et al., 2012).
2.1.3 Placing a Sports Bet
As noted, there has been a rise in the betting options available to punters. Traditionally
punters were limited to betting on the outcome of a sporting event, but now bets can be
placed place on a variety of events that may occur after the game has started or even while it
is underway (Forrest, 2012; Palmer, 2014). The International Centre for Sport Security (ICSS)
(2014) argues that the Internet has been instrumental in developing an array of betting options,
including: betting exchanges, live betting and the opportunity to bet on less publicized
sporting events.
The nature of placing a sports bet in Australia has also evolved, including fixed-odds wagers,
in-play bets, exotic bets and micro-bets. Fixed-odds wagering involves the bookmaker paying
the punter a ratio of the amount wagered if a certain team or athlete wins a match (Schnytzer
& Weinberg, 2008). Additional to placing a bet before a match, in-play (live) betting is an
option that enables punters to place a wager during a contest (Boniface, Lacarriere,
Verschuuren, & Tuallon, 2012). For example, during a rugby league match a punter can place
a bet on the winning team based upon the current live score. An exotic bet is another type of
in-play betting where a wager can be made on a particular situation occurring during a match
(VRGF, 2013). For instance, a punter could bet on which player will score the first try in a
rugby league match. Another type of wager is a micro-bet, which is similar to an exotic bet,
where a punter can bet on specific outcomes within a match. For example, a bet could be that
a no ball will occur on the third ball of a particular over in cricket. Micro-bets give punters
the chance to bet frequently and repetitively as there are usually only short periods between
placing a wager and the result of a bet occurring (VRGF, 2013). Rompuy (2015) suggests that
both exotic and micro-betting increase the chances of match manipulation.
The emergence of betting markets, such as ‘betting exchanges’, also provides punters with
better odds in comparison to the predominant method of placing a wager with a bookmaker
(Koning & vanVelzen, 2009). Introduced in 2000, the concept of betting exchanges
developed following a global shift to online sports betting and operates in a similar way to the
stock exchange (Smith, Paton, & Williams, 2006). Punters buy and sell bets themselves at the
odds they want, effectively acting as bookmakers. For a bet to go live the offer put out by the
punter needs to be matched by another user. Scant literature on betting exchanges suggests
the application of a system with a strong European influence (Smith et al., 2006). As a result,
it is difficult to estimate the popularity of betting exchanges within Australia given the lack of
empirical research contained within the literature.

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2.2 Sports Betting and Sport Integrity

Despite the growth and ease of sports betting there is limited research regarding the betting
habits of individuals involved in professional sport such as athletes, coaches and officials and,
more specifically, those residing in Australia. Sport integrity is defined as “preserving the
fundamental characteristics of sporting competition as being an honest test of skill and ability,
and to act on and off the field in ways that are consistent with preserving the social and
economic value of sport” (Sports Accord, 2011). Treagus, Cover, and Beasley (2011, p. 5)
state that whilst there are different interpretations of “integrity” which are contingent upon
context, a commonly held view suggests that integrity requires respect for “oneself and for
others, and espouses moral responsibility and moral accountability.” Furthermore, the
integrity of sport is described as encompassing fair play, respect for the game, sportsmanship,
positive personal values, compassion for others, and honesty in following rules (Treagus et al.,
2011).
Accordingly, the Australian Sports Commission (ASC) (2015) argues that ethics are the
fundamental component of sport integrity. Ethics guide the moral behavior and the moral
values of individuals, teams and organizations in order to maintain good character (Ianinska
& Garcia-Zamor, 2006). McNamee and Fleming (2007, p. 426) profess that ethics combines
principles, obligations, moral rules, agreements, and norms that individuals should follow to
uphold their integrity. Similarly, Lumpkin, Stoll, and Beller (2002) state that ethics is a
construct of three components: personal values of beliefs, social obligations, and professional
obligations. For instance, the ethical theory of consequentialism argues that the actions of an
individual are moral if their overall consequence leads to the greatest good (Rajczi, 2009). An
example of this is cheating to win a sporting match; whilst winning may be seen as a good
outcome for the team the act of cheating would negatively affect the team and sport itself, and
therefore be an immoral act. Ethics encourages individuals to act morally and not to go
against their own sense of right and wrong to achieve desired goals.
Treagus et al. (2011) argue that the underlying motivations of an individual’s participation in
sport impacts on sport integrity. Vallerand and Losier (1999) state that intrinsic motivation is
the measure of personal satisfaction that an individual receives from participating in sport
such as learning skills and accomplishing goals. In contrast, extrinsic motivation suggests that
an individual’s participation in sport is encouraged by external rewards such as wealth and
status associated with winning. While the motivation behind amateur sport is intrinsic
professional sport is increasingly shaped by extrinsic motivations (Treagus et al., 2011).
Hums, Barr, and Gullion (1999) state that the ethical considerations of professional sport
differ from amateur sport due to its commercialization and intent to entertain and generate
income. Therefore, it is evident that the move from intrinsic motivations within amateur sport
to the financial or extrinsic motivation apparent within professional sport has the potential to
impact on the integrity of sporting competitions.
Influential to maintaining the integrity of a sport is its culture. The ASC (2015) proffers that a
positive culture in a sport is associated with those sporting organizations that support the
maintenance of integrity within their strategic framework. Culture affects all levels of the

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hierarchy within sporting organizations and is enforced by consistency in developing systems

that encourage ethical values and decision-making (ASC, 2015). A positive culture towards
preserving integrity is important as it sustains community confidence, trust and support of the
sport. Maintaining integrity in sport has its advantages, including: increased participation and
retention rates, financial sustainability increased through sporting memberships, attracting
sponsors and grants, and on-field success resulting from the appeal of being associated with a
successful brand (ASC, 2015).
However, a growing issue that threatens sport integrity and its commercial viability is
betting-motivated corruption (McLaren, 2010). This type of corruption is motivated by
gambling and involves match-fixing, spot-fixing and the exploitation of insider information.
As this continues to threaten the integrity of sport, sporting organizations have feared that
implementing measures against betting-motivated corruption may give rise to the notion that
a gambling problem exists within the sport, thereby damaging their brand or image (McLaren,
2010). Commentary suggests that sporting organizations need to decide whether the
short-term damage to their “sporting image” in acknowledging the problem early on
outweighs the long-term damage betting-motivated corruption can have on sport integrity,
which may include the loss of members and sporting participants, and a decline in financial
support (McLaren, 2010).
3. Corruption in Sport
The former President of the International Olympic Committee, Jacques Rogge, stated that
corruption in sport motivated by the sports betting market “...is undoubtedly the biggest threat
to sport after doping” (IOC, 2010, p.1). Sport is a growth industry, generating billions of
dollars in revenue and providing thousands of jobs for Australians. However, with these large
profits comes the opportunity for crime and corruption. Maennig (2002, p. 62) proffers that
corruption in sport involves intentional or negligent perpetration of an illicit or unethical
activity, whereby a course of action is chosen by an individual that promises the greatest
benefit. In extension to this definition, Maennig (2005) explained that two different types of
corruption in sport exist: drug-related, which aims to win a contest or “super-perform”; and
betting-motivated, which aims to “mal-perform” or play to lose. With a clear division
between drug- and betting-related corruption, Boniface et al. (2012, p. 6) provide a more
specific definition of betting-motivated corruption, stating that it involves the “manipulation
or attempted manipulation of a result or aspect of a game with the aim of enrichment on the
sports betting market.” Much of the current literature on betting-motivated corruption in sport
suggests that internationally and in Australia the predominant forms of corruption are
match-fixing, spot-fixing, and the exploitation of insider information (ACC, 2013; Boniface
et al., 2012).
3.1 Common Forms of Sports Corruption
Match-fixing involves a team or individual player playing to lose a match in order to obtain
financial gain through the betting market (Gorse & Chadwick, 2011). For example, the most
prevalent match-fixing scandal in Australia involved the Victoria Premier League football
team, Southern Star FC, where the abnormally poor performances by a number of the team’s

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imported international players resulted in the loss of five matches in 2013 (Bricknell, 2015).
These losses were linked to irregularities in the betting market, which resulted in a Hungarian
and Malaysian-based Transnational Organized Crime (TOC) group profiting up to AU$2
million (Herald Sun, 2013). Match-fixing, as claimed by Hosmer-Henner (2010), threatens
the integrity of sport as spectators may believe that all matches are staged and therefore lose
interest, which ultimately leads to a decline in revenue. Currently there is limited literature on
the nature and extent of match-fixing in Australia; however, there have been a small number
of reported cases, signifying its existence. Internationally the rise of match-fixing has gained
considerable attention from both authorities and researchers. For instance Wolfers (2005), in
a study into how widespread match-fixing is, found that over 16 seasons of US college
basketball games 1% of games were subject to betting-motivated corruption. Similar findings
were also reported by Forrest (2012), who claims that approximately 1% of all European
football matches per season are affected by corruption.
Another form of corruption in sport is ‘spot-fixing’, which has emerged from the growth of
sports betting in which technology has created an increase in the number of activities/events
that a punter can now bet on within a match; it is no longer just a matter of betting on the
winner. Spot-fixing occurs when a wager is placed on a specific activity/event during a match,
and corrupt individuals stage this event during the game to win the bet. For example, a
corrupt player could stage a no-ball in cricket during an over for the purpose of a bet
(Anderson, 2011). Compared to match-fixing, this form of corruption is argued to be an
increased threat to sports integrity. Rompuy (2015, p. 17) supports this by stating that
spot-fixing is easier than fixing a match, it can be carried out by a single individual, and
causes less “moral hesitancy” for the persons involved. Further to this, Rompuy also found
that, in reality, spot-fixing in Europe associated with TOC groups was a decreasing risk as the
market for exotic and micro-bets has low liquidity, where a large bet placed on a market with
low liquidity attracts suspicion among betting regulators. However, the consequence of this is
that individual players, referees and others involved in sport are at an increased risk of
conducting their own spot-fixing activities. While Rompuy has examined this issue in Europe
there is limited commentary regarding the nature and extent of spot-fixing in Australia.
The exploitation of insider information is also a key threat to the integrity of sport. Palmer
(2014) states that individuals may have insider information on a particular subject, for
example a person knowing a star player is injured and placing a large bet on the team to lose
before the injury is made public. Misra, Anderson, and Saunders (2013) reported a case of
using insider information for betting purposes committed by an AFL player who used club
information regarding a player moving to a different position for a match, therefore
increasing the likelihood of the player scoring the first goal. From the present literature on the
use of insider information the majority of studies in Australia and worldwide have been on
sports that are commonly bet on, such as AFL, rugby league, and cricket, rather than sports
such as swimming and athletics. Furthermore, there is limited examination of the difference
in exploitation of insider information between limited and highly-funded betting markets
such as swimming and rugby league.

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3.2 Sports Corruption and Illegal Bets

Often associated with corruption in sport is the placing of illegal bets. It is estimated that
approximately 8000 bookmakers form the global sports betting market, where up to 80% of
these operators are located in regions with lower tax rates and limited regulation (ICSS,
2014). The consequence of this is that online bookmakers are able to create markets for
sporting contests occurring anywhere in the world. An illegal bet takes place when a punter
places a bet with an online bookmaker that does not have the lawful authorization to operate
in the country the punter is betting from. For example, a bookmaker in China may provide
live betting on Australian rugby league matches. As live betting over the Internet is banned in
Australia if an Australian was to place a live bet with the Chinese bookmaker it would be
classified as illegal. Within the international context, Kelly (2011) claims that in the US,
where sports betting is banned in many states, 99% of bets (up to US$380 billion per year)
made on sport are illegally placed utilizing offshore gambling platforms that are in
unregulated or under-regulated jurisdictions. The issue with this is that the illegal sports
betting market is often linked to orchestrated activities designed to alter the odds by
manipulating results through match-fixing, spot-fixing or the exploitation of insider
information (Heron & Chen, 2010). The limited amount of research on illegal betting using
offshore bookmakers within Australia represents a significant gap in the literature.
3.3 Categories of Sports Corruption
In examining the different forms of sports corruption Boniface et al. (2012) identified three
categories of corruption: corruption motivated by an individual, corruption encouraged by a
club or federation, and corruption linked with TOC. Corruption motivated by an individual,
such as an athlete or referee, is identified as the first stage of criminality in sport (Boniface et
al., 2012). For instance, betting-motivated corruption can involve players, coaches, or
referees influencing a sporting event in order to derive a financial benefit, whether it is the
outcome of a match or a certain occurrence during a match (Hosmer-Henner, 2010).
Corruption in sport can also stem from off-the-field activities and be influenced at a sports
administration level (Boniface et al., 2012). Whilst there is scant literature on
betting-motivated corruption at a club or sporting federation level within Australia there are
international examples, for instance the once thriving Chinese Super League was plagued
with corruption at the federation level, where competition administrators down to officials,
clubs, and their players were bribed to fix matches (Hill, 2010). This led to the collapse of
China’s national competition as well as several other leagues in Southeast Asia (Hill, 2010).
In conducting a review of the existing knowledge on betting-motivated corruption it is
evident that limited studies have been conducted surrounding the nature and extent of the
phenomenon within Australia. Misra et al. (2013) suggest that further commentary on this
issue should explore the vulnerabilities to such corruption and inform relevant organizations
on more coordinated and effective responses within the Australian context.
3.3.1 The Involvement of Transnational Organized Crime
The third form of sports corruption, that relating to TOC, involves criminal activity carried

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out by structured groups of individuals in more than one country, with the aim of gaining
profit through illegal means across national borders (Conklin, 2009; United Nations, 2004). A
review of the literature suggests that TOC groups are heavily involved in betting-motivated
corruption in sport (ACC, 2013). Through unregulated, illegal gambling and bookmaking
influenced by TOC groups orchestrated activities such as match-fixing, spot-fixing, or
exploiting insider information have become a threat to professional sport. The attractiveness
of sport to TOC groups is explained by Etges and Sutcliffe (2008), who suggest TOC
flourishes in the unregulated, decentralized environments that illegal online betting provides.
Furthermore, Palmer (2014) noted that the global nature of sport and sports betting itself does
not provide the geographical protection that previously protected athletes and officials. As a
result, TOC groups have the ability to influence a range of sports played all over the world.
For example, Misra et al. (2013) suggest that TOC groups target sub-elite-level fixtures as
they are easier to exploit and are subject to less scrutiny than more heavily supported
competitions.
The large profits that are generated by the sports betting industry have attracted the attention
of TOC groups. For instance, large amounts of profit in excess of $4–5 million in 90 days can
be produced (Heron & Chen, 2010). In order to achieve this Hill (2008) states that the perfect
conditions for fixing a match include: a reputation for honest play, poorly paid players and
clubs so they can be bribed, and competitions unconcerned about corruption. Heron and Chen
(2010) argue that both Australia and New Zealand are at risk of TOC groups’ involvement in
sport similar to what has occurred overseas. They further argue that Australia has the perfect
conditions for match fixing due to the following aspects: there is a lack of financial stability
amongst players and clubs, a shared time zone with Asia, a variety of different sporting
competitions, and a significant growth in the Australian gambling industry. Heron and Chen
(2010) further contend that in response to recent crackdowns across Europe and Asia it is
evident that Asian crime syndicates and other TOC groups are likely to explore corruption
sports betting activities in Australia and New Zealand.
In addition to generating enormous profits TOC groups also launder money gained from other
criminal activities through sports betting platforms. The Australian Transaction Reports and
Analysis Centre (AUSTRAC, 2011) argue that betting on sports is one of the most common
ways to launder money. The globalization of the sports betting market has been advantageous
to organized crime as it enables bets to be placed online illegally through unregulated
bookmakers (Boniface et al., 2012). The outcome of this is that large amounts of money
laundered through unregulated betting agencies can remain undetected. Boniface et al. (2012)
note that the Albanian and Italian crime groups used similar methods, with the Italian mafia
selling information regarding fixed football matches to the Albanians who would then place
bets with an Albanian online sports betting site that was unregulated in Italy.
The current review suggests that commentary surrounding the involvement of TOC groups in
manipulating elements of a sporting fixture is limited and the issue within Australia tends to
be discussed in a broad and general context.

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4. Theoretical Perspectives of Sports Corruption

The existence of betting-motivated corruption can be understood using a range of academic
theories, including: strain theory, contagion theory, rational choice theory, routine activity
theory, and moral disengagement.
4.1 Strain Theory
The cause of an individual’s corrupt behavior can be explained by the classical strain theory
proposed by Merton (1938), who argued that the reason behind criminal behavior is due to
pressures in society; in particular, the social structure of the American culture places
increased importance on achieving economic stability and that an individual can either
conform to this culture or deviate from the norm and attain this goal through criminal
behavior. However, Agnew (1992) introduced a broader version of the classical strain theory,
the general strain theory (GST). Agnew and Brezina (2010) contend that GST is a
contemporary and more general approach to the classical strain theory, proposing that a broad
range of strains contribute to criminal behavior. Strains can be described as situations that are
disliked by an individual. There are three categories of strain: failing to attain positively
valued goals, motivations that are positive, and the presentation of motivations that are
negative (Agnew, 1992). Strains can intensify, negatively affecting an individual by causing
them to feel anger and frustration. In order to ease these negative feelings caused by strain the
individual resorts to criminal behavior because legitimate approaches fail to reinforce
positive emotions. While it is evident there is an already established emphasis in the current
literature on addressing adolescent criminal behavior (Baron, 2007; Ostrowsky & Messner,
2005; Paternoster & Mazerolle, 1994) there is a gap in knowledge surrounding the
application of GST within the context of sports corruption.
4.2 Social Contagion Theory
Scherer and Cho (2003) suggest that social contagion involves individuals adopting the
attitudes or behaviors of others in the network of people they communicate with. For example,
renowned doper in cycling, Lance Armstrong, would supply banned substances to his
teammates who would adopt his cheating attitude to win at no costs. If a new cyclist was to
join the team they either had to adopt the same attitude as others in the team or risk being
replaced (United States Anti-Doping Agency, 2012). While social contagion has been adopted
to explore a range of phenomenon such as quitting smoking, obesity, suicide, and anti-social
behavior (Hill, Rand, Nowak, & Christakis, 2010), in reviewing the literature limited
commentary has been conducted applying this theory within a sports corruption context.
4.3 Rational Choice Theory (RCT)
Rational choice theory (RCT) is a framework that involves an economic model in which
individuals make decisions. Based upon the general framework of preventing crime by
reducing the opportunity for it to occur, and increasing the risks associated with committing
criminal behavior, the rational choice model takes into account opportunity, cost and benefit
(Cornish & Clarke, 1987). Furthermore, it is argued that RCT focuses on explaining the
criminal event, while other criminological theories examine individual delinquency (Cornish

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& Clarke, 1987). Piliavin, Gartner, Thornton, and Matsueda (1986) suggest that, by applying
RCT to criminal activity, if the expected benefit of an illegal act is greater than its alternatives
then the individual will engage in crime. Piliavin et al. (1986) claim that the benefit of a
considered activity takes into account three elements: the likelihood of being punished, the
expected returns, and the likely penalty if the individual was punished for the activity. RCT
has been applied to examine a broad range of criminal offences such as traffic offences
(Corbett & Simon, 1992), white-collar crime (Piquero, Exum, & Simpson, 2005), and theft
and violence (Matsueda, Kreager, & Huizinga, 2006). Preston and Szymanski (2003)
demonstrated the application of RCT to the issue of match-fixing; however, further
contribution needs to be made to the existing knowledge in understanding the nature of sports
corruption from an RCT perspective.
4.4 Routine Activity Theory (RAT)
The routine activity theory (RAT) is an opportunity-based framework that suggests that a
crime occurs when the following three factors exist: a motivated offender, who is the
individual looking to commit a crime; the availability of a suitable target, which is the “thing”
the motivated offender is aiming for; and the absence of a capable guardian, who is any
person or object which acts as a crime deterrent (Cohen & Felson, 1979). According to RAT,
crime occurs when a motivated offender and a suitable target come together in space and time
while in the absence of a capable guardian (Cohen & Felson, 1979). Peurala (2013) examined
betting-motivated corruption in sport and illegal betting through the RAT perspective. A
motivated offender has a range of opportunities through online sports betting, where the risk
of getting caught can increase when a match is fixed and a noticeable bet is made using a
regulated bookmaker in the same jurisdiction. However, the risk of being caught decreases
when a bet is placed with an unregulated bookmaker on a fixed match (Peurala, 2013).
However, while there is existing literature examining RAT against a range of different crimes
there is limited discussion surrounding its application in understanding sports corruption.
4.5 Moral Disengagement
Moral disengagement is a theory of moral behavior influenced by Bandura’s (1991) eight
psychosocial mechanisms. Bandura (1991) states that moral disengagement occurs when an
individual chooses to oppose their moral standards, which would normally deter them from
wrong-doing, by disengaging from their own feeling of guilt when breaching individual
moral standards. For instance, moral disengagement has been linked with behavior involving
the violation of moral and social boundaries, and antisocial behavior (Bandura, Caprara,
Barbaranelli, Pastorelli, & Regalia, 2001). In support of this notion, Moore (2007) states that
research surrounding moral disengagement has been largely theoretical, exploring issues
surrounding anti-social behavior among young people.
However, there are a range of studies exploring moral disengagement to gain a greater
understanding of corruption in sport. In a review conducted by Boardley and Kavussanu
(2011), they argue that the existing literature on moral disengagement in sport investigates
behaviors that occur during sport participation, and the relationship between moral
disengagement and doping. For example, Long, Pantaleon, Bruant, and d’Arripe-Longueville

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(2006) found that moral disengagement occurred when an authority figure, such as a coach,
instructs an athlete or team to do something; the athlete or team absolve themselves of
responsibility and do whatever they are instructed to do. Similar conclusions were drawn by
Traclet, Romand, Moret, and Kavussanu (2011), who found that soccer players placed the
responsibility of their antisocial actions, such as aggression or cheating, on the referee due to
bad officiating, or they displaced their responsibility to their coach and teammates. In
reviewing the existing literature it is evident that moral disengagement can provide greater
understanding of a wide range of corruption-related contexts.
5. Anti-Corruption in Sport: Prevention and Enforcement
Misra et al. (2013) argue that the prevention and enforcement of betting-motivated corruption
in sport requires a nationally co-ordinated anti-corruption strategy. In an evaluation of the
anti-corruption approach in Finland Peurala (2013) identified a lack of knowledge on
match-fixing within Finland, absence of match-fixing in the criminal code, and the
nonexistence of a nationally co-ordinated anti-corruption strategy. This same suggestion was
made by Sportsradar (2014), who recommend a coordinated approach involving inter-agency
collaboration between sporting bodies, law enforcement agencies, and betting regulators.
5.1 National Match-fixing Policy
In Australia the National Policy on Match-fixing in Sport was introduced in 2011 by the
federal government, along with a non-regulatory body called the National Integrity in Sport
Unit (NISU). NISU provides oversight, monitoring, and coordination of anti-corruption
efforts in Australian sport (NISU, 2015). The policy is a national anti-corruption strategy that
aims to maintain integrity in sport by encouraging a coordinated effort between sporting
bodies, law enforcement agencies, and betting regulators. The policy also aims to ensure
consistency across Australia with respect to legislation targeting match-fixing and that there
are national standards which are applied to governing bodies, sporting organizations, and the
betting industry (NISU, 2015). It is evident that Australia is committed to a coordinated,
inter-agency approach to address the issue of match-fixing in sport. However, it is unknown if
the policy is effective, and there is no clear suggestion of TOC being included within its
scope. Furthermore, there is limited commentary on what penalties are applied to athletes,
coaches, support staff and other key stakeholders involved in betting-motivated corruption at
a sporting organization level.
5.2 Prevention at the Sporting Organization Level
Boniface et al. (2012) argue that maintaining the integrity of sport starts with the prevention
of corruption at the sporting organization level. Sporting organizations such as federations,
clubs, and associations are responsible for athletes, coaches, support staff, and officials. Three
central elements exist in preventing betting-motivated corruption: education, investigation,
and sanctioning. Drawing upon the approach of the highly regulated horse racing industry,
Anderson (2011) argues that educational programs, codes of conduct, moral clauses in
contracts, anti-corruption investigation units, and strict and lengthy sanctions are all
fundamental in effective anti-corruption policy of sport governing bodies. However,

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Transparency International (2014), in a pilot study on match-fixing in European football,

identified “awareness” and “educational programs” as key to addressing the problem of
match-fixing in Europe. The same view was also identified by Abbott and Sheehan (2013),
and Forrest (2012), who contend that the fundamental elements of effective prevention
include awareness, education and training aimed at increasing an individual’s knowledge of
the consequences of betting-motivated corruption. It is evident that education is important in
addressing sport corruption; however, it should also be supported by codes of conduct and
other measures developed through good governance.
In examining the current literature on the prevention of sports betting-motivated corruption it
is evident that good governance within sporting organizations is necessary in addressing the
issue of corruption (Abbott & Sheehan, 2013; Forrest, 2012; Transparency International,
2012). For instance, sports betting-motivated corruption plagued Chinese football at all levels
of the organizational hierarchy as a result of poor governance (Hill, 2008). Transparency
International (2014) suggest that current governance practices in sport need to change, such
as improving transparency by increasing the information publicly shared about organizational
activities and decisions. A lack of transparency and oversight within a sporting body increases
the chances of corruption (Transparency International, 2014). Good governance also
encompasses promoting values against sports betting-motivated corruption, as well as the
inclusion of anti-corruption provisions within codes of conduct (Transparency International,
2014).
In the Australian context, Gleeson (2011) identified varying results in terms of integrity
procedures; while some sporting bodies responded proactively with modifications to their
codes of conduct and educational programs others were more reactive in their approach,
which saw changes in processes and integrity methods only coming into effect if a breach
occurred (Gleeson, 2011). It is apparent that limited literature exists surrounding the
perceptions of individuals affected by processes and integrity methods administered by
Australian sporting organizations. Furthermore, a gap in the literature exists surrounding the
effectiveness of anti-corruption strategies within sporting organizations in Australia.
5.3 Betting Regulators
Within the existing literature researchers have argued for a ban on sports betting to prevent
sports corruption. The negative impact of this was identified by Kelly (2011), where, to
address the issue of match-fixing, the prohibition of sports betting in the US generated an
increased use of offshore online bookmakers operating within illegal betting markets. The
implications of this ban were also explained by Hosmer-Henner (2010), who suggested that
prohibiting sports betting in one jurisdiction forced punters to access bookmakers in other
jurisdictions outside the authority of betting regulators. The advantage of a regulated system
is that licensed bookmakers are able to effectively identify and report irregular betting
patterns to the necessary agencies (Forrest, 2008), which often indicates corruption in sport,
such as match-fixing and spot-fixing. Regulated systems ensure that the integrity of sport is
maintained, but also prevent the bookmaker from losing money. For example, in Australia,
Forrest (2008) reports that an agreement was introduced in 2006 where bookmaker Betfair

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and Cricket Australia would share revenue and detect irregularities in the betting market.
Overall, the literature suggests that the prohibition of sports betting does not properly address
the issue of corruption in sport.
While strict regulation of betting operators is suggested there is only so much that can be
done before perpetrators will place a bet through online bookmakers in unregulated countries.
Forrest (2008) suggests that an international approach to regulating the sports betting market
would be more effective due to the globalization of online betting. The ICSS (2014) states
that betting regulatory frameworks have not developed at a rate concurrent with the growth of
the global online sports betting market. The majority of national betting regulators are poorly
resourced and inexperienced in conducting effective surveillance, monitoring, and analysis of
the betting market for irregular activity that may indicate the manipulation of sporting
matches and money laundering (ICSS, 2014). In reviewing existing knowledge surrounding
the regulation of sports betting the question is whether betting regulators are effective in their
detection of irregular patterns and if these irregularities are promptly reported to the
appropriate sporting bodies.
5.4 Law Enforcement
The detection and enforcement of sports betting-motivated corruption can be carried out by
either an anti-corruption body or law enforcement agency (Ramos, 2009). Heron and Chen
(2010) and Transparency International (2008) state that the best method to address
betting-motivated corruption is to adopt a standardized and harmonized regime. This is
evidenced by the creation of the World Anti-Doping Code, which is enforced by the World
Anti-Doping Agency (WADA). Heron and Chen argue that the advantages of implementing a
government-run, uniform, anti-corruption body include greater financial stability, and
investigative and enforcement powers. However, the issue with developing a global
anti-corruption body against betting-motivated corruption is challenged by Forrest (2008),
who argues that gaining international cooperation takes time, and that the most effective
measure of anti-corruption against sports corruption starts with sporting organizations
themselves.
In Australia the ACC (2013) state the resources dedicated to managing threats to the integrity
of sport in Australia have not grown at the same pace as the sports betting industry. For
instance, the law enforcement response to betting-motivated corruption within Australia and
worldwide has traditionally been dealt with reactively and with little urgency as opposed to
other TOC issues, such as drug importation (Misra et al., 2013). However, while still playing
catch-up, the approach towards preventing betting-motivated corruption has significantly
changed, with law enforcement agencies moving towards a more proactive method in
addressing the issue. For instance, Bricknell (2015) states that a limited number of
specialized sports intelligence units have been set up in Australia. At a state level the Victoria
Police established the Sport Integrity Intelligence Unit in 2013, while the New South Wales
Police Force established the Casino and Racing Investigation Unit; however, they focus
mainly on race-fixing in horse and greyhound racing. Bricknell (2015) also reports that the
Australian Federal Police and ACC have an interest in sports corruption.

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This review highlights the limited empirical research regarding the extensiveness of the law
enforcement effort in Australia; however, this could be due to the limited number of
specialized units developed to address sport corruption.
6. Conclusion
A review of the literature has highlighted various themes surrounding sports
betting-motivated corruption. The sports betting industry has evolved exponentially since the
development of the Internet, which has brought about the development of a readily accessible
global market that exploits interactive media devices. A targeted marketing strategy by the
industry, including sport sponsorship, has led to it becoming an integral part of the spectator
experience. Commentary on the importance of integrity in preserving the economic and
social value of sport has been examined, as well as how sport integrity is under threat by
corrupt practices motivated by the sports betting market. The literature review examined the
different forms of betting motivated corruption, in particular: match-fixing, spot-fixing, and
the exploitation of insider information. These forms can be instigated by an individual, club,
federation, or TOC group. Five predominant academic theories in sports corruption—strain
theory, contagion theory, rational choice theory, routine activity theory, and moral
disengagement—have been shown to provide a theoretical platform to examine the
phenomenon of betting-motivated corruption. This review also examined commentary
surrounding the benefits of employing a coordinated multi-agency response comprising of
sporting organizations, betting regulators, and law enforcement, to combat the threat of
betting-motivated corruption.
However, despite the many theories available through which to examine and understand
sports betting-motivated corruption what this review highlights is that more research is
needed to better understand the nature and extent of the phenomenon worldwide and, in
particular, throughout Australia. With gambling firmly embedded in Australian culture, the
dearth of research on the phenomenon in an Australian context and the continuing growth of
online, interactive gambling opportunities, there is a need to better understand current
anti-corruption measures, and the effectiveness of these anti-corruption strategies in
addressing the threat of betting-motivated corruption in Australian sport.
Acknowledgements
The authors acknowledge the support provided by the Queensland Academy of Sport Centre
of Excellence for Applied Sport Science Research.
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