Sport betting market seeks to secure itself

16 September 2010
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By Bill Wilson

Business reporter, BBC News

sports betting on sport is big organization.

Sport England estimates the value of costs on sport-related betting in England grew from ₤ 1.7 bn in 1985 to ₤ 2.8 bn in 2008.
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And that figure is most likely to have actually grown even more, with an estimated ₤ 1bn bet on the World Cup alone in the UK this summertime.

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

But when the stability of events are struck the gaming market suffers, and profits are put under risk if consumers can not wager with 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 gambling market now.

"Not just is it a considerable market in world organization, it is one that is now on the front pages of newspapers."
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Four Pakistan cricketers have actually been questioned by authorities over spot-fixing allegations associating with a test against England at Lord's last month.

Three of these gamers have actually 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 champ John Higgins was cleared of match-fixing accusations, however was prohibited last week for six months for stopping working to report the unlawful method to him to throw frames.

There are also two other continuing examinations - unrelated to Mr Higgins - into snooker.

'Honest'

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

"If the sport is viewed as truthful, straight and fair that is good for wagering companies due to the fact that people will spend cash sports betting with confidence," he says.

"If you take the Pakistan accusations, although unassociated to the UK managed wagering industry ... it is not truly a positive story for wagering in the UK.
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"That is since the understanding is that 'cricket is now something we might need to beware about'."

'Education'

So what can be done to prevent future scandals?

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

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

His organisation represents men and women 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 treatments, however that the way to deal with potential concerns around gamers is likewise through education.

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

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

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

'Brand damage'

Matt Johnson, head of regulative legal guidance at the Football Association, concurs.

"Prevention is much better than treatment, and we likewise make a point of informing gamers 'you are going to be caught'."

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

"If it loses that then people do not wish to bet, that is not in gaming companies' interests, and it is not in our interests."
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He said that as soon as an excellent credibility was lost, the damage to a sport was "incalculable".

FA guidelines suggest gamers are not allowed to bet on a competitors in which they are included.

Mr Johnson says players have to be seen not to be cashing in on any inside understanding, which he says might cause "brand name damage" to football and its competitions.

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

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

'Overwhelmingly legal'

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

The Gambling Commission was set up under the Gambling Act 2005 to manage commercial gaming in Great Britain.

An ex-chief constable of West Midlands police, Mr Tofiluk has duty 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 occurring through UK operators is legal and fair," he says.
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"But for some there is the temptation to ... corruptly interfere with the result of a sporting occasion.

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

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

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

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

In May 2010, the commission also 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 prosecution, a 24-year-old man who was cautioned for cheating in relation to greyhound racing.

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

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

Meanwhile, he says much of those seeking to cheat the sports betting wagering industry were experienced about sports betting and sporting people, and about wagering operations and the movement of cash.

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

Related internet links

World sports betting Law Report

ICC

Professional Players Federation

Professional Footballers' Association

The FA

Betfair

Sport & Markt
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BLP

Gambling Commission

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