Sport Betting Industry Wants To Protect Itself

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Sport wagering market seeks to safeguard itself

16 September 2010

By Bill Wilson

Business reporter, BBC News

sports betting on sport is big company.

Sport England approximates the value of costs on sport-related gaming 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 summer season.

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

But when the stability of occasions are struck the gambling market suffers, and earnings are put under threat if consumers can not wager 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 gambling market now.

"Not just is it a considerable market in world company, 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 connecting to a test against England at Lord's last month.

Three of these gamers have stated they will also challenge the corruption charges installed 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 claims, but was banned recently for 6 months for failing to report the illegal method to him to throw frames.

There are also 2 other continuing examinations - not associated to Mr Higgins - into snooker.

'Honest'

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

"If the sport is viewed as sincere, straight and fair that benefits wagering companies due to the fact that people will spend money wagering with confidence," he says.

"If you take the Pakistan accusations, although unrelated to the UK regulated sports betting industry ... it is not truly a positive story for sports betting in the UK.

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

'Education'

So what can be done to avoid future scandals?

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

As Simon Taylor of the Professional Players' Federation explains: "The only people who can repair a match are the rivals or the referee."

His organisation represents guys and ladies in 15 sports betting in the UK, being an umbrella organisation for all gamer 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 deal with prospective issues around gamers is also through education.

Mr Taylor says rules need to be discussed plainly to gamers with clear examples, and by individuals they respect.

"Through informing players about sports betting you reinforce integrity and that remains in everybody's interest," he includes.

"If gamers are harder 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 treatment, and we also make a point of telling gamers 'you are going to be caught'."

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

"If it loses that then people don't want to bet, that is not in gaming firms' interests, and it is not in our interests."

He said that when a great track record was lost, the damage to a sport was "incalculable".

FA rules indicate gamers are not permitted to wager on a competitors in which they are involved.

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

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

"We need to overcome to gamers the reputational threat to the video game," he states. "Once self-confidence has been damaged it is difficult to get it back - mud sticks."

'Overwhelmingly legal'

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

The Gambling Commission was established under the Gambling Act 2005 to manage industrial gaming in Great Britain.

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

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

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

"Such unfaithful has the possible to undermine the integrity of a sport, and it likewise hurts the industrial interests of sports betting bodies and sports betting wagering."

The commission has actually developed an internal Sports Betting Intelligence Unit to get and distribute info to sporting authorities, wagering firms and policing authorities.

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

"We will signal sports betting of our concerns, to assist prevent or reduce [prohibited] activity"

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

'Vulnerabilities'

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

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

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

Meanwhile, he states a lot of those aiming to cheat the sports betting industry were educated about sports betting and sporting people, and about sports betting operations and the movement of money.

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