To what degree cheating is tolerable in sports

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Cheating in sports is not new, we hear on news about such things. Recently a news magazine quoted about a swimmer cheating in an Olympic event to win gold. After his confession no action has been taken by any authorities rather some people are discussing about different methods a swimmer can use to enhance his performance. Adding to his confession that swimmer also quoted that everybody does some bit of cheating. What this thing mean. Are there any standards or limits for cheating that people do not know. What about the integrity & genuineness of the sporting event like the Olympic. If somebody cheated, then confessed, caught in camera, became a hot news and no sporting authority has taken any action then it seems that there are some tolerable limits of cheating which the common viewers or sport lovers do not know.