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Sport wagering industry wants to protect itself

16 September 2010
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By Bill Wilson

Business reporter, BBC News

sports betting on sport is huge company.

Sport England approximates the worth 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 actually 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 total international gambling market will be worth 263bn euros (₤ 220bn) by 2012, with much of that driven by internet and sports betting gaming.

But when the integrity of events are hit the gambling market suffers, and profits are put under danger if customers can not wager with self-confidence.

And there can have been few higher-profile sport sports betting stories than those impacting 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 papers."

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

Three of these players have actually said they will also challenge the corruption charges mounted 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 allegations, but was prohibited recently for six months for stopping working to report the unlawful technique to him to throw frames.

There are likewise 2 other continuing investigations - unrelated 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 perceived as honest, straight and fair that is good for sports betting companies since people will spend money sports betting with confidence," he states.

"If you take the Pakistan allegations, although unassociated to the UK managed wagering market ... it is not really a positive story for sports betting in the UK.

"That is due to the fact that the perception 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 sportsmen and sportswomen.

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

His organisation represents males and females 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 possible issues around gamers is likewise through education.

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

"Through informing gamers about sports betting wagering you enhance stability which is in everybody's interest," he adds.

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

'Brand damage'

Matt Johnson, head of regulatory 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 necessary that sport is straight, and is seen to be directly," he adds.

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

He said that once a great credibility was lost, the damage to a sport was "enormous".

FA rules suggest gamers are not enabled to bank on a competitors in which they are involved.

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

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

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

'Overwhelmingly legal'

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

The Gambling Commission was established under the Gambling Act 2005 to regulate industrial gambling in Great Britain.

An ex-chief constable of West Midlands authorities, Mr Tofiluk has duty for policing all wagering 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 interfere with the result of a sporting occasion.

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

The commission has actually developed an in-house Sports Betting Intelligence Unit to receive and share information to sporting authorities, sports betting firms and policing authorities.

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

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

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

'Vulnerabilities'

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

However, Mr Tofiluk states there are still eight ongoing investigations, which much beneficial information has likewise been passed to sports betting authorities.

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

Meanwhile, he says a lot of those looking to cheat the sports betting wagering industry were experienced about sports betting and sporting people, and about sports betting operations and the motion of cash.

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

Related web 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