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Gambling Scandals: Why they Happen and how to correct them

Gambling Scandals: Why they Happen and how to correct them. BY GARRY SMITH AGRI CONFERENCE (APRIL 8, 2011) BANFF, AB. Introduction. Aim of the presentation Definition of ‘scandal’ Why govt. scandals are mainly found in liberal democracies -- Existence of a free press

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Gambling Scandals: Why they Happen and how to correct them

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  1. Gambling Scandals: Why they Happen and how to correct them BY GARRY SMITH AGRI CONFERENCE (APRIL 8, 2011) BANFF, AB

  2. Introduction • Aim of the presentation • Definition of ‘scandal’ • Why govt. scandals are mainly found in liberal democracies --Existence of a free press --Competing political parties --Adherence to the “rule of law” --A belief in due process

  3. Elements of a Scandal • A wrongdoing • Someone to reveal it • An interested public Figure 1 - Key Ingredients of a Scandal Transgression Public Disclosure +  +  Public Disapproval Concealment/hypocrisy Public Allegations

  4. Scandal Severity Factors • Hypocrisy • Cover up • Weak or implausible denials • Serious or uniqueness of transgression • Social status or celebrity of those involved • Contamination effect • Who gets blamed

  5. Common Types of Gambling Scandals • Sports-related • Cheating Scams • Government/political

  6. OLG Scandal

  7. OLG Scandal

  8. OLG Scandal

  9. OLG Scandal

  10. BCLC Scandal

  11. BCLC Scandal

  12. BCLC Scandal

  13. Conditions Underlying These Scandals • Structural Conduciveness • Dysfunctional Corporate Structure --Misplaced Priorities --Willful Blindness --Perils of Puffery --Public Expectation of Sanity and Probity

  14. ScandalResolution Three Common Reactions • Redemptive Organization • Treading Water Organization • Rogue Organization

  15. Concluding Thoughts • Has there been substantial change? • Continuing slip-ups • Gaining credibility

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