Complexity Triggered by Economic Globalisation— The Issue of On-Line Betting-Related Match Fixing

Abstract

Complexity in mainstream economics consists in high intermediary consumption of mathematics. A new approach to complexity economics dwells upon path-dependent global systems; their emergence and evolving organisation. The focus here is on the complexity of the real economic world due to globalisation. On-line betting related match-fixing is a case in point about which the article presents non-exhaustive empirical evidence and shows how it is analysed with the standard model of the economics of crime. There is no room for complexity in such an individualistic approach to corrupt behaviour applied to bet-related fixes. A more complex model is sketched based on interactions between a global (though underground) market for fixes and the actual partly legal, partly illegal global sport betting market. These interactions exhibit how complex is the issue of combating betting-related match fixing. Reviewing those major policies envisaged for containing the latter—prohibition; sanctions; regulation; privatisation (betting rights)—the article opts for a global ‘Sportbettobin’ tax on sport betting gains; in the same vein as the famous Tobin tax on international capital transfers. The novelty in this approach is a variable (increasing) rate applied to increasing tranches of taxation (gains) which should dry up the worst cases of on-line bettingrelated match fixing.

Keywords

• sports economics
• globalisation
• match fixing
• on-line betting
• corruption
• taxation
• modelling