This is one of the big picture industry topics I feel strongest about.
Fact: the more regulation a financial market has, the less corruption it has.
Legal betting = less fixed games.
It is so much easier to bet a fixed game into a non-regulated market and not get caught. If 100% of action were regulated, there would be many fewer fixed games (because the risk would be much greater)
The general media does not understand this.
They feel like that legalized betting means more betting ... the amount of betting will be similar either way, that's the key. And even if the lowered taboo associated with legalization increases the amount being bet, ANYONE willing to break the law to fix a game will certainly be willing to break the law to bet that game with an illegal bookie.
So a lack of legal betting stops nothing, but legal betting and the oversight/regulation that goes with it acts as a strong deterrent.
I'd love to hear your thoughts ...