Sport Betting Industry Seeks To Protect Itself

Sport wagering market wants to protect itself

16 September 2010

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By Bill Wilson

Business press reporter, BBC News

sports betting on sport is substantial business.

Sport England approximates the worth of spending on sport-related gaming in England grew from ₤ 1.7 bn in 1985 to ₤ 2.8 bn in 2008.

And that figure is most likely to have actually grown further, with an approximated ₤ 1bn bet on the World Cup alone in the UK this summertime.

Meanwhile, German research company Sport & Markt approximates the overall worldwide gambling market will be worth 263bn euros (₤ 220bn) by 2012, with much of that driven by web and sports betting gambling.

But when the integrity of occasions are hit the gambling market suffers, and incomes are put under risk if clients can not wager with self-confidence.

And there can have been couple of higher-profile sport sports betting stories than those affecting cricket and snooker this year.

High-profile

As Sport & Markt's Gareth Moore observes: "Everyone talks about the sports betting gambling market now.

"Not only is it a substantial market in world business, it is one that is now on the front pages of newspapers."

Four Pakistan cricketers have been questioned by police over spot-fixing accusations connecting to a test against England at Lord's last month.

Three of these players have said they will likewise challenge the corruption charges installed against the trio by the sport governing body the International Cricket Council.

Meanwhile, three-times snooker world champion John Higgins was cleared of match-fixing claims, but was prohibited last week for six months for stopping working to report the unlawful method to him to throw frames.

There are likewise two other continuing investigations - not associated to Mr Higgins - into snooker.

'Honest'

David O'Reilly is legal counsel for Betfair, one of the UK's most significant online sporting exchanges.

"If the sport is viewed as honest, straight and fair that benefits wagering companies due to the fact that people will invest money sports betting with confidence," he says.

"If you take the Pakistan accusations, although unassociated to the UK controlled sports betting market ... it is not really a favorable story for wagering in the UK.

"That is due to the fact that the understanding is that 'cricket is now something we may have to beware about'."

'Education'

So what can be done to avoid future scandals?

According to specialists at a World sports betting Law Report conference into sports betting, the focus has to be on sportsmen and sportswomen.

As Simon Taylor of the Professional Players' Federation mentions: "The only people who can fix a match are the rivals or the referee."

His organisation represents males and females in 15 sports betting in the UK, being an umbrella organisation for all gamer organisations, such as the Professional Footballers' Association.

He believes that it is not adequate to simply have deterrents, sanctions and disciplinary procedures, however that the method to tackle prospective concerns around players is also through education.

Mr Taylor says guidelines need to be explained plainly to players with clear examples, and by people they appreciate.

"Through informing players about sports betting you strengthen integrity and that remains in everybody's interest," he adds.

"If players are harder to corrupt then sport will be more difficult to corrupt."

'Brand damage'

Matt Johnson, head of regulative legal recommendations at the Football Association, concurs.

"Prevention is much better than cure, and we also make a point of informing gamers 'you are going to be caught'."

"It is crucial that sport is directly, and is seen to be straight," he includes.

"If it loses that then individuals do not wish to wager, that is not in gaming companies' interests, and it is not in our interests."

He stated that as soon as a good track record was lost, the damage to a sport was "enormous".

FA rules imply players are not enabled to wager on a competitors in which they are involved.

Mr Johnson says gamers have actually to be seen not to be capitalizing any inside knowledge, which he says could cause "brand name damage" to football and its competitors.

So, even a 2nd Division player knocked out of the FA Cup in the autumn can not bet on a Manchester United v Chelsea cup final the following spring.

"We have to overcome to gamers the reputational threat to the video game," he states. "Once confidence has been harmed it is difficult to get it back - mud sticks."

'Overwhelmingly legal'

If this represents the "carrot" method, then perhaps Nick Tofiluk, director of policy at the Gambling Commission, represents the "stick".

The Gambling Commission was established under the Gambling Act 2005 to manage business gaming in Great Britain.

An ex-chief constable of West Midlands police, Mr Tofiluk has responsibility for policing all wagering in the UK apart from spread betting, which is the remit of the FSA.

"The frustrating majority of sports betting taking place through UK operators is legal and reasonable," he states.

"But for some there is the temptation to ... corruptly hinder the result of a sporting event.

"Such cheating has the prospective to undermine the stability of a sport, and it likewise hurts the commercial interests of sports betting bodies and sports betting wagering."

The commission has actually established an internal Sports Betting Intelligence Unit to receive and distribute details to sporting authorities, sports betting firms and policing authorities.

"Since 2007 we have actually experienced a substantial insight into world of corrupt sports betting," he states.

"We will alert sports betting of our concerns, to assist prevent or curtail [illegal] activity"

In May 2010, the commission also presented a confidential telephone hotline for those with information or suspicions.

'Vulnerabilities'

But in a two-and-a-half year period there has been simply one prosecution, a 24-year-old man who was cautioned for unfaithful in relation to greyhound racing.

However, Mr Tofiluk states there are still 8 continuous examinations, which much helpful details has likewise been passed to sports betting authorities.

He said that where an investigation by a sport governing body was quicker, and more cost effective, then the commission would consider terminating a criminal examination "in favour of letting sports betting governing bodies take the lead".

Meanwhile, he says many of those looking to cheat the sports betting wagering market were well-informed about sports betting and sporting people, and about sports betting operations and the movement of money.

"They look for the vulnerabilities of these to assist in their business."