Sport sports betting industry seeks to safeguard itself

16 September 2010

By Bill Wilson

Business press reporter, BBC News

Betting on sport is big service.
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Sport England estimates the value 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 even more, with an estimated ₤ 1bn bet on the World Cup alone in the UK this summertime.

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

But when the stability of events are hit the sports betting market suffers, and revenues are put under hazard if consumers can not wager with self-confidence.

And there can have been couple of higher-profile sport wagering stories than those impacting 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 organization, it is one that is now on the front pages of newspapers."
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Four Pakistan cricketers have been questioned by cops over spot-fixing allegations relating to a test against England at Lord's last month.

Three of these gamers have stated they will also challenge the corruption charges mounted versus the trio by the sport governing body the International Cricket Council.

Meanwhile, three-times snooker world champion John Higgins was cleared of match-fixing allegations, but was prohibited recently for 6 months for failing to report the illegal technique to him to throw frames.

There are also two other continuing investigations - not related 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 firms since individuals will spend money sports betting with confidence," he states.

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

"That is due to the fact that the understanding is that 'cricket is now something we might need to be mindful about'."

'Education'
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So what can be done to prevent future scandals?

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

As Simon Taylor of the Professional Players' Federation mentions: "The only individuals who can repair 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 player organisations, such as the Professional Footballers' Association.

He thinks that it is inadequate to simply have deterrents, sanctions and disciplinary procedures, but that the way to tackle prospective problems around gamers is likewise through education.

Mr Taylor states rules require to be described clearly to players with clear examples, and by individuals they appreciate.

"Through educating gamers about sports betting you enhance integrity which remains in everyone's interest," he includes.

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

'Brand damage'

Matt Johnson, head of regulative legal suggestions at the Football Association, agrees.

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

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

"If it loses that then people do not want to bet, that is not in gaming firms' interests, and it is not in our interests."

He stated that when a good credibility was lost, the damage to a sport was "enormous".

FA rules indicate gamers are not allowed to wager on a competition in which they are included.
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Mr Johnson says gamers need to be seen not to be capitalizing any inside understanding, which he says might trigger "brand damage" to football and its competitors.

So, even a Second Division gamer knocked out of the FA Cup in the autumn can not bet on a Manchester United v Chelsea cup last the following spring.

"We have to get over to players the reputational threat to the game," he states. "Once self-confidence has been harmed it is hard to get it back - mud sticks."

'Overwhelmingly legal'

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

The Gambling Commission was established under the Gambling Act 2005 to regulate business sports betting in Great Britain.

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

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

"But for some there is the temptation to ... corruptly interfere with the outcome of a sporting occasion.

"Such cheating has the potential to undermine the integrity of a sport, and it also hurts 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 disseminate details to sporting authorities, betting companies and policing authorities.

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

"We will inform sports betting of our concerns, to assist prevent or cut [unlawful] activity"

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

'Vulnerabilities'

But in a two-and-a-half year period there has actually been just one prosecution, a 24-year-old guy who was warned for unfaithful in relation to greyhound racing.

However, Mr Tofiluk says there are still 8 ongoing investigations, and that much helpful information has likewise been passed to sports betting authorities.
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He stated that where an investigation by a sport governing body was quicker, and more cost reliable, then the commission would consider stopping a criminal investigation "in favour of governing bodies take the lead".

Meanwhile, he says numerous of those seeking to cheat the sports betting industry were experienced about sports betting and sporting people, and about betting operations and the movement of cash.

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

Related internet links

World sports betting Law Report

ICC

Professional Players Federation

Professional Footballers' Association

The FA

Betfair

Sport & Markt

BLP

Gambling Commission