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Sport wagering industry looks to protect itself
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16 September 2010
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By Bill Wilson

Business press reporter, BBC News

Betting on sport is substantial business.

Sport England approximates the worth of spending 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 further, with an approximated ₤ 1bn bet on the World Cup alone in the UK this summertime.

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

But when the integrity of events are hit the sports betting market suffers, and profits are put under hazard if customers can not wager with confidence.

And there can have been few higher-profile sport sports betting 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 considerable market in world service, it is one that is now on the front pages of newspapers.“

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 actually said they will also challenge the corruption charges installed against 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, however was banned last week for six months for stopping working to report the unlawful method to him to toss frames.

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

'Honest'

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

"If the sport is perceived as sincere, straight and fair that is good for wagering companies since individuals will spend money wagering with confidence,” he states.

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

"That is because the understanding is that ‘cricket is now something we may need 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 needs to be on sportsmen and sportswomen.

As Simon Taylor of the Professional Players’ Federation points out: “The only individuals who can repair a match are the competitors 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 insufficient to merely have deterrents, sanctions and disciplinary procedures, however that the way to take on possible concerns around gamers is likewise through education.

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

"Through informing players about sports betting you strengthen stability and that is 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 guidance at the Football Association, concurs.

"Prevention is much better than cure, and we likewise make a point of telling gamers ‘you are going to be captured’.“

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

"If it loses that then individuals do not want to bet, that is not in sports betting companies’ interests, and it is not in our interests.“

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

FA guidelines imply gamers are not permitted to bank on a competitors in which they are included.

Mr Johnson says players need to be seen not to be cashing in on any inside understanding, which he says could cause “brand damage” to football and its competitors.

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

"We need to overcome to gamers the reputational danger to the game,” he states. “Once confidence has actually been harmed it is tough to get it back - mud sticks.“

'Overwhelmingly legal'

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

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

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

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

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

"Such cheating has the potential to weaken the integrity of a sport, and it likewise hurts the business 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, sports betting firms and policing authorities.

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

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

In May 2010, the commission also presented a confidential telephone hotline for those with details 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 cautioned for cheating in relation to greyhound racing.

However, Mr Tofiluk states there are still eight ongoing investigations, which much helpful information has actually also been passed to sports betting authorities.

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

Meanwhile, he states much of those wanting to cheat the sports betting market were well-informed about sports betting and sporting individuals, and about sports betting operations and the motion of money.

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

Related internet links

World sports betting Law Report
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ICC

Professional Players Federation

Professional Footballers’ Association

The FA

Betfair

Sport & Markt
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BLP

Gambling Commission
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