Sport Betting Industry Wants To Protect Itself

Sport wagering market seeks to safeguard itself

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16 September 2010

By Bill Wilson

Business reporter, BBC News

sports betting on sport is huge business.

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

And that figure is most likely to have grown further, with an estimated ₤ 1bn bet on the World Cup alone in the UK this summer.

Meanwhile, German research study firm 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 industry suffers, and revenues are put under risk if clients can not wager with self-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 speak about the sports betting market now.

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

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

Three of these gamers have said they will likewise challenge the corruption charges installed 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, but was banned last week for six months for stopping working to report the illegal technique 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, among the UK's most significant online sporting exchanges.

"If the sport is viewed as truthful, straight and fair that is great for sports betting companies due to the fact that people will invest money sports betting with confidence," he states.

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

"That is due to the fact that the perception is that 'cricket is now something we may need to beware 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 gambling, the focus needs 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 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 believes that it is insufficient to merely have deterrents, sanctions and disciplinary treatments, however that the way to tackle possible concerns around gamers is likewise through education.

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

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

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

'Brand damage'

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

"Prevention is much better than treatment, and we likewise make a point of telling players 'you are going to be captured'."

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

"If it loses that then individuals do not wish to wager, that is not in gambling companies' interests, and it is not in our interests."

He stated that as soon as a great reputation was lost, the damage to a sport was "enormous".

FA guidelines indicate gamers are not enabled to bank on a competition in which they are involved.

Mr Johnson says gamers need to be seen not to be cashing in on any inside understanding, which he states might cause "brand damage" to football and its competitors.

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

"We have to overcome to players the reputational danger to the game," he states. "Once confidence has actually been damaged it is tough to get it back - mud sticks."

'Overwhelmingly legal'

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

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

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

"The frustrating majority of sports betting wagering happening through UK operators is legal and reasonable," he says.

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

"Such cheating has the prospective to undermine the stability of a sport, and it also damages the commercial interests of sports betting bodies and sports betting."

The commission has developed an internal Sports Betting Intelligence Unit to get and share info to sporting authorities, sports betting firms and policing authorities.

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

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

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

'Vulnerabilities'

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

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

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

Meanwhile, he states a number of those looking to cheat the sports betting wagering market were knowledgeable about sports betting and sporting individuals, and about sports betting operations and the movement of money.

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