Sport Betting Industry Looks To Protect Itself

Sport wagering market wants to safeguard itself

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16 September 2010

By Bill Wilson

Business reporter, BBC News

sports betting on sport is big company.

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

Which figure is likely to have actually grown even more, with an approximated ₤ 1bn bet on the World Cup alone in the UK this summer season.

Meanwhile, German research study 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 gaming.

But when the stability of events are hit the gaming market suffers, and earnings are put under danger if clients can not bet with confidence.

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

High-profile

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

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

Four Pakistan cricketers have actually been questioned by police over spot-fixing allegations relating to a test versus England at Lord's last month.

Three of these gamers have said 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 allegations, but was prohibited recently for 6 months for failing to report the illegal approach to him to toss frames.

There are also two other continuing investigations - unrelated 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 perceived as honest, straight and reasonable that benefits wagering firms because people will invest money sports betting with self-confidence," he says.

"If you take the Pakistan allegations, although unrelated to the UK controlled wagering market ... it is not truly a favorable story for wagering in the UK.

"That is because the perception is that 'cricket is now something we might have to take care about'."

'Education'

So what can be done to prevent future scandals?

According to professionals at a World sports betting Law Report conference into sports betting gambling, the focus needs to be on sportspersons 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 believes that it is inadequate to merely have deterrents, sanctions and disciplinary procedures, however that the method to deal with potential concerns around gamers is likewise through education.

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

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

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

'Brand damage'

Matt Johnson, head of regulatory legal advice at the Football Association, concurs.

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

"It is vital that sport is straight, and is seen to be directly," he adds.

"If it loses that then people don't wish to wager, that is not in betting companies' interests, and it is not in our interests."

He said that as soon as an excellent reputation was lost, the damage to a sport was "enormous".

FA rules imply players are not enabled to bet on a competition in which they are included.

Mr Johnson says players have actually to be seen not to be cashing in on any inside understanding, which he says could trigger "brand name damage" to football and its competitions.

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 overcome to players the reputational threat to the game," he says. "Once confidence has been harmed it is tough to get it back - mud sticks."

'Overwhelmingly legal'

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

The Gambling Commission was set up under the Gambling Act 2005 to regulate industrial gaming in Great Britain.

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

"The frustrating majority of sports betting happening 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 cheating has the possible to undermine the integrity of a sport, and it also hurts the business interests of sports betting bodies and sports betting wagering."

The commission has actually established an internal Sports Betting Intelligence Unit to get and disseminate details to sporting authorities, wagering firms and policing authorities.

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

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

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

'Vulnerabilities'

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

However, Mr Tofiluk says there are still 8 ongoing examinations, and that much beneficial details has likewise been passed to sports betting authorities.

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

Meanwhile, he states a number of those seeking to cheat the sports betting industry were experienced about sports betting and sporting individuals, and about wagering operations and the motion of cash.

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