Sport Betting Industry Looks To Protect Itself

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Sport wagering market seeks to secure itself

16 September 2010

By Bill Wilson

Business reporter, BBC News

sports betting on sport is big organization.

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

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

Meanwhile, German research study firm Sport & Markt estimates the overall global 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 gambling industry suffers, and earnings are put under risk if clients can not wager with confidence.

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

High-profile

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

"Not just is it a significant market in world organization, it is one that is now on the front pages of newspapers."

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

Three of these gamers have actually stated they will likewise challenge the corruption charges mounted 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 allegations, but was banned last week for six months for failing to report the illegal method to him to throw frames.

There are also 2 other continuing examinations - 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 sincere, straight and fair that benefits wagering companies because people will spend cash sports betting with confidence," he says.

"If you take the Pakistan claims, although unrelated to the UK managed wagering market ... it is not truly a favorable story for sports betting in the UK.

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

'Education'

So what can be done to prevent future scandals?

According to experts 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 fix a match are the competitors or the referee."

His organisation represents men and ladies 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 not sufficient to merely have deterrents, sanctions and disciplinary treatments, however that the method to take on possible concerns around players is also through education.

Mr Taylor says rules require to be explained plainly to gamers with clear examples, and by people they appreciate.

"Through educating players about sports betting wagering you enhance stability which remains in everybody's interest," he adds.

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

'Brand damage'

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

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

"It is essential 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 gaming companies' 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 indicate players are not enabled to bet on a competition in which they are involved.

Mr Johnson states gamers need to be seen not to be cashing in on any inside understanding, which he says might trigger "brand name 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 have to get over to players the reputational threat to the game," he states. "Once confidence has been harmed it is tough to get it back - mud sticks."

'Overwhelmingly legal'

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

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

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

"The frustrating bulk of sports betting wagering occurring through UK operators is legal and fair," he states.

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

"Such unfaithful has the potential to weaken the integrity of a sport, and it likewise harms the industrial interests of sports betting bodies and sports betting wagering."

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

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

"We will inform sports betting of our concerns, to help avoid or reduce [unlawful] activity"

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

'Vulnerabilities'

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

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

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

Meanwhile, he states much of those looking to cheat the sports betting industry were educated about sports betting and sporting individuals, and about wagering operations and the movement of money.

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