Sport betting industry looks to protect itself

16 September 2010

By Bill Wilson

Business press reporter, BBC News

sports betting on sport is huge service.

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

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

Meanwhile, German research study company Sport & Markt estimates the overall global gaming market will deserve 263bn euros (₤ 220bn) by 2012, with much of that driven by web and sports betting gaming.

But when the stability of occasions are struck the gaming industry suffers, and earnings are put under risk if clients can not wager with self-confidence.
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And there can have been few higher-profile sport 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 market now.

"Not only is it a significant market in world company, 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 gamers have stated they will likewise challenge the corruption charges mounted versus the trio by the sport governing body the International Cricket Council.

Meanwhile, three-times snooker world champ John Higgins was cleared of match-fixing accusations, but was prohibited last week for six months for failing to report the illegal approach to him to throw frames.

There are also 2 other continuing examinations - unrelated to Mr Higgins - into snooker.

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

"If the sport is viewed as sincere, straight and reasonable that is great for sports betting companies due to the fact that people will invest cash sports betting with self-confidence," he states.
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"If you take the Pakistan allegations, although unassociated to the UK regulated betting market ... it is not actually a positive story for wagering in the UK.

"That is due to the fact that the understanding is that 'cricket is now something we may need to take care about'."

'Education'

So what can be done to prevent future scandals?

According to experts at a World sports betting Law Report conference into sports betting, the focus needs to be on sportspersons and sportswomen.

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

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

He thinks that it is not adequate to simply have deterrents, sanctions and disciplinary procedures, however that the way to deal with possible problems around gamers is also through education.

Mr Taylor says guidelines require to be discussed plainly to gamers with clear examples, and by people they appreciate.

"Through informing players about sports betting you strengthen integrity and that is in everyone's interest," he includes.

"If gamers are more difficult 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 important that sport is straight, and is seen to be directly," he adds.

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

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

FA rules suggest players are not enabled to bank on a competition in which they are included.

Mr Johnson says gamers need to be seen not to be cashing in on any inside knowledge, which he states could trigger "brand name damage" to football and its competitors.

So, even a Second Division player knocked out of the FA Cup in the fall can not bet on a Manchester United v Chelsea cup final the following spring.
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"We need to overcome to gamers the reputational danger to the game," he states. "Once self-confidence has been harmed it is tough to get it back - mud sticks."

'Overwhelmingly legal'

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

The Gambling Commission was set up under the Gambling Act 2005 to manage commercial gambling in Great Britain.

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

"The overwhelming majority of sports betting occurring through UK operators is legal and reasonable," he states.

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

"Such unfaithful has the prospective to undermine the stability of a sport, and it likewise harms the industrial interests of sports betting bodies and sports betting wagering."

The commission has developed an in-house Sports Betting Intelligence Unit to receive and share information to sporting authorities, betting companies and policing authorities.

"Since 2007 we have experienced a significant insight into world of sports betting," he says.

"We will inform sports betting of our issues, to help avoid or cut [unlawful] activity"

In May 2010, the commission likewise introduced a personal telephone hotline for those with details or suspicions.

'Vulnerabilities'

But in a two-and-a-half year duration there has been simply one prosecution, a 24-year-old guy who was warned for cheating in relation to greyhound racing.

However, Mr Tofiluk states there are still eight continuous investigations, and that much helpful information has actually likewise been passed to sports betting authorities.

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

Meanwhile, he says much of those looking to cheat the sports betting industry were knowledgeable about sports betting and sporting people, and about wagering operations and the motion of money.

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

Related web links

World sports betting Law Report

ICC

Professional Players Federation

Professional Footballers' Association

The FA

Betfair

Sport & Markt

BLP

Gambling Commission