Abstract
Currently, several proposed changes in sports betting laws are being debated around the world. Despite the global expansion of sports betting opportunities, relatively little research has been done to compare different regulatory environments. Many countries have banned this gambling activity, while many others allow unlimited sports betting. This chapter offers some concise impressions of sports betting regulation worldwide and a more detailed view of some individual cases worth mentioning. Outside of the United States, sports betting appears to be popular, widely legal, and quite heterogeneous in terms of market structure and legislation. In any case, there are diverse disputes going on as to how sports betting should be changed and adapted in the next future. It appears evident that the prospective value of the sports betting market may increase, but the potential effects of expanding sports betting opportunities may have to be balanced against the negative consequences of this gambling activity.
Thanks for comments on earlier versions of this chapter due to Prof. David Forrest (University of Liverpool, UK). The comments and suggestions contributed by two anonymous referees were also highly appreciated.
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Notes
- 1.
Islamic laws do not permit gambling of any kind (Lewis and Jarvis 2012).
- 2.
Unfortunately, sports corruption seems to grow as fast as sports betting does. Forrest and Simmons (2003) discuss the negative aspects of sports betting, including the incentives for corruption it generates.
- 3.
Forrest and Simmons (2003) also examine the potential for sports betting availability to generate revenue for both governments and sports organizations.
- 4.
That was mainly the case of the football pools — pari-mutuel wagering primarily on the outcomes of soccer (football) matches — that represented the first gambling mass market in Europe to offer a long-odds, high-prize product. The market for football pools in Europe used to be operated by the same state-authorized entity that later operated lottery products. It flourished in Europe between the 1940s and 1980s as an opportunity to gamble for life-changing prizes and a way for governments to raise funds for social welfare causes (Forrest and Pérez 2011).
- 5.
The European Commission has sent requests for details on current gambling regulations to several states that still function under an exclusive state monopoly.
- 6.
It should be noted, however, that most of the corruption cases detected in Europe are linked to the illegal Asian gambling market (Hill et al. 2014).
- 7.
Within the United Kingdom, Northern Ireland is a different gambling jurisdiction and its government and parliament are responsible for its gambling laws and regulations.
- 8.
Statistics are drawn from the latest available data covering the period April 2013 to March 2016 (http://www.gamblingcommission.gov.uk/Gambling-data-analysis/statistics/Industry-statistics.aspx).
- 9.
Beginning May 1, 1961, licensed bookmakers were allowed to take bets (Betting and Gaming Act 1960).
- 10.
The Gambling Act 2005 set out the regulatory framework for gambling and betting.
- 11.
The Gambling (Licensing and Advertising) Act 2014 introduced point of consumption regulation.
- 12.
The gray market status allows online gambling platforms and both EU and non-EU (e.g., Asian) sports betting operators not to pay taxes in Germany, even when they accept deposits and placements from players located in Germany.
- 13.
The two options seem to be clear: establish a state monopoly to protect consumers and prevent addiction to gambling, or open the market to private operators under the administrative control of the government.
- 14.
The German Gambling Market 2016 (https://www.goldmedia.com/fileadmin/goldmedia/2015/Studien/2016/Gluecksspiel_2016/Sample_Report_Gambling_Market_Germany_2016_Goldmedia.pdf).
- 15.
Football pools (La Quiniela) in Spain were introduced in the 1946–47 season and they have long occupied an important place in the Spanish gambling market. The exceptional importance of this gambling industry in Spain lies in the scope of its economic and social benefits; generally speaking, the funds obtained are to be used to promote sports activities — see García et al. (2008) for a further description of the distribution of football pool revenues.
- 16.
Based on information the World Lottery Association provided for 2014, Spain is clearly still the leading football pool market in Europe, with annual sales of €273million.
- 17.
In Spain, the Statutes of Autonomy grant state powers to the regions on gaming matters.
- 18.
As stated in its Article 1, “The purpose of this Law is to regulate gaming activities, in their different forms, developed within the scope of the State in order to guarantee the protection of public order, as well as to fight against fraud, prevent addictive behavior, protect the rights of minors and safeguard the rights of whoever participates in the games.”
- 19.
It should be noted that online gambling in Spain is now legal and the main business area in Internet gambling in Spain is sports betting (Humphreys and Pérez 2012).
- 20.
Sociedad Estatal Loterías y Apuestas del Estado (SELAE), assigned to the Ministry of Finance and Civil Service, was created through Royal Decree-Law 13/2010 of December 3, 2010, which reorganized the activity of the public entity Loterías y Apuestas del Estado.
- 21.
The 2015 statement and yearly report on gambling (http://www.ordenacionjuego.es/en/memorias-informe-anual).
- 22.
The Nigerian government is, however, allowed to operate betting pools and hold horse racing (Du Toit 2015).
- 23.
Most countries in Africa have gambling legislation in place, so companies just need to obtain a license and bank account to operate.
- 24.
Sports betting in Africa (http://www.fortuneaffiliates.com/blog/targeting-new-markets/sports-betting-in-africa/).
- 25.
Sports betting is the only legal form of online gambling in South Africa.
- 26.
See Wong (2016) for a description of Asian gambling markets by country.
- 27.
The Chinese, Indian, and Southeast Asian markets, where betting is largely illegal, have been identified as the principal operational jurisdictions for unregulated bookmakers.
- 28.
It should be mentioned that Asian markets are used by those who fix European as well as Asian competitions.
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Pérez, L. (2017). Outside of the United States: The Worldwide Availability of Sports Betting. In: Savona, E., Kleiman, M., Calderoni, F. (eds) Dual Markets. Springer, Cham. https://doi.org/10.1007/978-3-319-65361-7_22
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