Wherever it is permissible to bet on sports, there is the potential for perverse incentives on athletes to modify their play and benefit, most obviously by betting against oneself. Is this unavoidable?
Perhaps permit sports betting as well as fully permit throwing games and other modifications of play. Illegalize punishing the throwing of games. This will make corruption so rampant that no one will want to bet on sports any more: there are better investments of return versus risk. But then the equilibrium might swing back.
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