Sport wagering industry looks to protect itself

16 September 2010

By Bill Wilson

Business press reporter, BBC News

sports betting on sport is big service.

Sport England approximates the worth of costs on sport-related sports betting 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 summer.
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Meanwhile, German research study firm Sport & Markt approximates the total worldwide gaming market will deserve 263bn euros (₤ 220bn) by 2012, with much of that driven by internet and .

But when the stability of events are struck the gaming market suffers, and profits are put under hazard if clients can not bet with confidence.

And there can have been few higher-profile sport wagering stories than those impacting cricket and snooker this year.

High-profile

As Sport & Markt's Gareth Moore observes: “Everyone speak 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 actually been questioned by authorities over spot-fixing claims associating with a test against England at Lord's last month.

Three of these players 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 champion John Higgins was cleared of match-fixing accusations, however was prohibited last week for 6 months for failing to report the illegal approach to him to throw frames.

There are also two other continuing investigations - unrelated to Mr Higgins - into snooker.
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'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 fair that benefits wagering firms because people will spend cash wagering with self-confidence,” he states.

"If you take the Pakistan allegations, although unrelated to the UK regulated sports betting industry ... 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 be mindful about’.“

'Education'

So what can be done to avoid future scandals?

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

As Simon Taylor of the Professional Players’ Federation points out: “The only people who can repair a match are the rivals or the referee.“

His organisation represents males 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 inadequate to merely have deterrents, sanctions and disciplinary procedures, but that the way to tackle possible concerns around gamers is likewise through education.

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

"Through educating players about sports betting you enhance stability and that remains in everyone's interest,” he adds.

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

'Brand damage'

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

"Prevention is better than treatment, and we likewise make a point of informing players ‘you are going to be captured’.“

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

"If it loses that then individuals don't want to bet, that is not in gambling companies’ interests, and it is not in our interests.“

He said that as soon as an excellent credibility was lost, the damage to a sport was “enormous”.

FA guidelines suggest players are not allowed to bank on a competition in which they are involved.

Mr Johnson states players need to be seen not to be capitalizing any inside understanding, which he says might cause “brand name damage” to football and its competitions.

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

"We need to overcome to players the reputational risk to the game,” he says. “Once self-confidence has actually been damaged it is difficult to get it back - mud sticks.“
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'Overwhelmingly legal'
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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 industrial gambling in Great Britain.

An ex-chief constable of West Midlands authorities, Mr Tofiluk has responsibility 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 wagering happening through UK operators is legal and fair,” he says.

"But for some there is the temptation to ... corruptly disrupt the result of a sporting occasion.

"Such cheating has the potential to weaken the integrity of a sport, and it also damages the industrial interests of sports betting bodies and sports betting wagering.“
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The commission has developed an in-house Sports Betting Intelligence Unit to get and distribute details to sporting authorities, sports betting firms and policing authorities.

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

"We will inform sports betting of our issues, to help prevent or curtail [prohibited] 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 duration there has been just one prosecution, a 24-year-old man who was cautioned for cheating in relation to greyhound racing.

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

He said that where an examination by a sport governing body was quicker, and more expense reliable, then the commission would consider stopping a criminal investigation “in favour of letting sports betting governing bodies take the lead”.

Meanwhile, he says a number of those aiming to cheat the sports betting wagering industry were well-informed about sports betting and sporting people, and about wagering operations and the movement of money.

"They look for the vulnerabilities of these to help 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

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