Sport sports betting industry seeks to safeguard itself

16 September 2010

By Bill Wilson

Business reporter, BBC News

sports betting on sport is huge business.

Sport England estimates the worth of spending on sport-related gaming in England grew from ₤ 1.7 bn in 1985 to ₤ 2.8 bn in 2008.
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Which figure is likely to have grown further, with an approximated ₤ 1bn bet on the World Cup alone in the UK this summer.

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

But when the stability of occasions are hit the sports betting market suffers, and profits are put under risk 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 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 authorities over spot-fixing accusations relating to a test against England at Lord's last month.
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Three of these players 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 champion John Higgins was cleared of match-fixing allegations, but was prohibited recently for 6 months for failing to report the prohibited technique to him to toss frames.

There are also 2 other continuing examinations - 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 perceived as sincere, straight and reasonable that benefits sports betting firms because people will invest money wagering with self-confidence," he says.

"If you take the Pakistan accusations, although unrelated to the UK regulated wagering market ... it is not actually a positive story for wagering in the UK.

"That is because the perception is that 'cricket is now something we might need to beware about'."
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'Education'

So what can be done to avoid future scandals?

According to professionals at a World sports betting Law Report conference into sports betting, the focus has 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 not enough to merely have deterrents, sanctions and disciplinary treatments, however that the method to take on prospective issues around players is also through education.

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

"Through educating gamers about sports betting you enhance stability which remains in everyone's interest," he adds.

"If gamers 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, concurs.

"Prevention is much better than remedy, and we also make a point of telling gamers 'you are going to be caught'."
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"It is imperative that sport is straight, and is seen to be straight," he adds.

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

He stated that once a good track record was lost, the damage to a sport was "enormous".

FA rules indicate players are not enabled to bet on a competitors in which they are involved.

Mr Johnson states players have actually to be seen not to be capitalizing 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 bet on a Manchester United v Chelsea cup final the following spring.

"We need to overcome to players the reputational risk to the video game," he says. "Once confidence has actually been damaged it is tough to get it back - mud sticks."

'Overwhelmingly legal'

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

The Gambling Commission was established under the Gambling Act 2005 to manage commercial 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 wagering, which is the remit of the FSA.

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

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

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

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

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

"We will inform sports betting of our issues, to help prevent or curtail [unlawful] activity"

In May 2010, the commission likewise introduced a private telephone hotline for those with details 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 warned for cheating in relation to greyhound racing.

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

He stated that where an examination 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 states much of those wanting to cheat the sports betting wagering market were experienced about sports betting and sporting people, and about sports betting operations and the movement of cash.

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

Related web links

World sports betting Law Report

ICC

Professional Players Federation

Professional Footballers' Association

The FA

Betfair

Sport & Markt

BLP

Gambling Commission
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