Dreaming Small: Curtailing Prop Bets to Prevent Sports Corruption

Globally, sports betting has become the “number one factor fueling corruption in sports.” Although the United States has not been as affected by this problem as other countries (at least in modern times), the recent widespread legalization of sports betting in America—accompanied by a surge in sports gambling, especially online—might change that. Thirty-eight U.S. states now permit sports betting, and six more are considering following suit. In 2023, Americans placed roughly $120 billion worth of bets with legal sportsbooks, a near $30 billion increase from 2022, and the percentage of Americans who bet on sports has grown to 39%, up from 19% in 2022. As sports gambling proliferates, so too does the risk of competition manipulation for monetary gain. A slate of recent scandals provides anecdotal evidence that this is indeed a serious problem. For example, in 2024, NBA player Jontay Porter was banned from the NBA for his involvement in a gambling scheme that included tipping off certain bettors that he would exit a game early and underperform sportsbooks’ expectations. In 2023, the University of Alabama head baseball coach was fired for providing information that Alabama would lose a certain game to a gambler who then bet on that outcome.

A comprehensive, or even global, solution to this problem would be ideal, but such a solution will likely take time to enact and implement. Regulators ought not wait. Instead, in the near term, state regulators can and should target a subset of the problem by restricting forms of betting that present an especially significant risk of competition manipulation. One area that deserves particular attention is the proliferation of “prop bets” on individual athletes at the collegiate level. Continue reading

Anticorruption and The Fourth Estate: Lessons from the Vatican “Trial of the Century”

In December 2023, Cardinal Becciu—once considered a leading candidate for the papacy—became one of several defendants sentenced to prison by a Vatican tribunal for financial crimes against the Church. The case, dubbed the Vatican “trial of the century,” is a high-profile example of Pope Francis’ fight against corruption within the Church, one of his top priorities since taking charge. Despite the convictions, the trial embroiled the Vatican in controversy about the fairness of its legal system and the Pope’s allegedly improper involvement in the investigation. There is extensive debate as to whether the Pope’s actions were justified.

What is less open to debate, however, is that international press coverage was highly critical of the Vatican. Major news outlets picked up and ran with defendants’ claims that certain papal actions amounted to “unacceptable abuses” and “invalidated the entire justice of the trial.” For example, the New York Times described the trial as “rais[ing] as many questions about the Vatican’s judicial system, the competence of its officials and the pope’s style of governance as it did about [the] crime.” The Washington Post said the Vatican emerged from the trial “worse for wear, with new questions raised about the effectiveness and fairness of its legal system.” The Associated Press’ (AP) reporting, which is reproduced in publications across the globe, is particularly worth highlighting. In an article titled “The First Outside Legal Analyses of Vatican’s ‘Trial of the Century’ Are In, And They’re Critical,” the AP featured Professor Geraldina Boni’s claims that the Pope’s actions “represented a clear violation of the right to a fair trial,” and raised the prospect of a “violation of divine law to which even the pope is subject.” These and other news articles included rebuttals from Vatican officials, but those rebuttals mostly consisted of conclusory platitudes, such as the claim that the trial was carried out “in full respect of the guarantees for the suspects,” or condemnation of the criticisms as “on the level of international heresy.”

As earlier posts on this blog have highlighted, because public opinion of a government’s anticorruption work is an important factor in whether the work succeeds, public relations is a “crucial tool” in fighting corruption. Negative media coverage is a familiar issue to those in the anticorruption field. Targets of a corruption probe will often do their best to delegitimize it. Common tactics include casting the probe as a politically motivated witch-hunt, or, as here, denouncing the legitimacy of the process as an unfair, abusive violation of human rights. How anticorruption authorities respond to these accusations may play a significant role in the perception and legitimacy of the prosecutions. The consistently negative press coverage of the Vatican’s prosecution of these cases suggests the Vatican made mistakes in its public relations strategy. Is that correct? And if so, what might the explanation be?

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The Vatican’s Anticorruption Crackdown and the Rule of Law

One of Pope Francis’s top priorities, after his election in 2013, was cracking down on the Vatican’s financial corruption. In his first months as pope, Francis closed thousands of unauthorized accounts of the Vatican Bank, and in 2014, he created the Office of the Auditor General to monitor Vatican finances and spearhead anticorruption efforts. Perhaps the most high-profile consequence of the Pope’s crackdown was the two-and-a-half year investigation and trial of Cardinal Giovanni Angelo Becciu—the Pope’s former chief of staff—and nine others for financial corruption. While this so-called “Vatican trial of the century” included a range of alleged crimes, its locus involved the Holy See’s $380 million investment in a London real estate deal, which Vatican prosecutors alleged defrauded the Vatican to the tune of tens of millions. In December 2023, Cardinal Becciu was convicted of three counts of embezzlement and sentenced to five and a half years in prison. All but one of the other defendants were convicted on charges including embezzlement, corruption, and fraud, and several of them also received prison terms.

Although viewed by some as a triumph for the Pope’s efforts to clean up the Vatican, the investigation and prosecution of Becciu and his codefendants generated a firestorm of criticism. One legal expert affiliated with the defense described certain actions by Vatican authorities as “unacceptable abuses;” a Vatican canon lawyer likened the process to that of a “banana republic.” The most serious complaint—raised by the defense team, some legal commentators, and at least one cardinal—was that Pope Francis improperly used his power to “secretly” change the law four times via papal “rescripts” (roughly equivalent to executive orders) throughout the course of the investigation to give prosecutors “essentially, and a bit surreally, ‘carte blanche.’” These rescripts, which were never formally published (and were not produced to the defendants until the trial was underway), did four things:

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