In our previous post, we looked at some benefits associated with online sports betting and how it has brought convenience to gamblers. The success of the sports betting industry has brought us back to a topic on business risks that we covered a few months back. This is out of the realization that with every successful business, comes its own set of risks which if not mitigated can cause the downfall of a business.
Let’s take a look at negative effects of sports betting and how they have affected the industry.
A negative effect on the integrity of sports
The sports betting industry attracts billions of dollars in bets annually. These are usually bets on both high profile and low profile gaming events and tournaments. Because of the high stakes that are usually involved, some gamblers and bookies will often make attempts to influence the outcome of games so that they can win big. There have been cases of referees being bribed to make wrong calls to favor one team over the other, or players being paid to throw away games. Such scandals have been all too common in major tournaments and leagues across the world, and in various sports. This has ended up having a negative effect on the integrity of sports because players stop playing for the enjoyment of the game but rather in favor of the highest paying bookies.
Players corrupted at a very young age
Any popular sport or league will attract sports betting. This even applies to college tournaments such as basketball, soccer and football which happen to be very popular sports because of the huge rivalries that elicit a lot of passion from competing fans. So serious are these tournaments that they attract major bookies and gamblers who have been known to influence the outcomes of games by bribing college players to throw away games. It’s believed that bookies and gamblers take advantage of the desperation of college students struggling with financial issues, and provide them quick money as a solution out of their problems. The dangerof such negative practices is that players are corrupted while they are still just kids and are likely to carry on with these malpractices even after transitioning into professionals.
Such malpractices that have been witnessed in sport betting have resulted in countries like the United States of America criminalizing sports betting. When governments have to take such drastic measures that kill an industry it goes to show the full extent of how businesses can be affected by risk. It’s therefore important for industry players especially in sports betting to be proactivein mitigating negative practices that are perpetrated in this industry for the benefit of their continued survival in the markets where governments have not come in to shut them down.
We invite you to share with us your experiences and success stories in your business adventure.