Sport Betting Industry Seeks To Protect Itself

Sport wagering market aims to secure itself

16 September 2010

By Bill Wilson

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Business press reporter, BBC News

sports betting on sport is huge business.

Sport England estimates the value of costs 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 grown even more, with an approximated ₤ 1bn bet on the World Cup alone in the UK this summertime.

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

But when the stability of occasions are hit the sports betting market suffers, and earnings are put under threat if customers can not wager with 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 discuss the sports betting market now.

"Not just is it a significant 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 claims relating to a test versus England at Lord's last month.

Three of these players have actually 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 accusations, however was prohibited last week for six months for stopping working to report the unlawful technique to him to throw frames.

There are likewise two other continuing investigations - not related to Mr Higgins - into snooker.

'Honest'

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

"If the sport is viewed as truthful, straight and reasonable that is great for sports betting companies since people will invest money wagering with confidence," he states.

"If you take the Pakistan claims, although unassociated to the UK controlled wagering industry ... it is not really a positive story for wagering in the UK.

"That is since the perception is that 'cricket is now something we might have to take care 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 gambling, the focus needs to be on sportsmen and sportswomen.

As Simon Taylor of the Professional Players' Federation explains: "The only individuals who can fix 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 gamer organisations, such as the Professional Footballers' Association.

He believes that it is inadequate to merely have deterrents, sanctions and disciplinary procedures, but that the method to take on potential issues around gamers is also through education.

Mr Taylor says rules require to be described clearly to gamers with clear examples, and by people they respect.

"Through informing gamers about sports betting you reinforce integrity which is in everybody's interest," he includes.

"If players 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 cure, and we also make a point of telling gamers 'you are going to be captured'."

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

"If it loses that then individuals don't wish to bet, that is not in gambling firms' interests, and it is not in our interests."

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

FA guidelines suggest gamers are not permitted to wager on a competition in which they are involved.

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

So, even a 2nd Division player knocked out of the FA Cup in the autumn can not bank on a Manchester United v Chelsea cup last the following spring.

"We have to get over to gamers the reputational danger to the video game," he says. "Once self-confidence has been damaged it is difficult to get it back - mud sticks."

'Overwhelmingly legal'

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

The Gambling Commission was established under the Gambling Act 2005 to control industrial gambling in Great Britain.

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

"The overwhelming bulk of sports betting wagering taking place through UK operators is legal and fair," he states.

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

"Such cheating has the potential to weaken the stability of a sport, and it also hurts the commercial interests of sports betting bodies and sports betting wagering."

The commission has established an internal Sports Betting Intelligence Unit to receive and disseminate info to sporting authorities, wagering companies and policing authorities.

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

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

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

'Vulnerabilities'

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

However, Mr Tofiluk states there are still 8 ongoing examinations, which much beneficial information has likewise been passed to sports betting authorities.

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

Meanwhile, he says numerous of those seeking to cheat the sports betting wagering market were knowledgeable about sports betting and sporting people, and about wagering operations and the movement of money.

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