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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 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 --Competing political parties --Adherence to the “rule of law” --A belief in due process
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
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
Common Types of Gambling Scandals • Sports-related • Cheating Scams • Government/political
Conditions Underlying These Scandals • Structural Conduciveness • Dysfunctional Corporate Structure --Misplaced Priorities --Willful Blindness --Perils of Puffery --Public Expectation of Sanity and Probity
ScandalResolution Three Common Reactions • Redemptive Organization • Treading Water Organization • Rogue Organization
Concluding Thoughts • Has there been substantial change? • Continuing slip-ups • Gaining credibility