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Sport sports betting industry aims to safeguard itself

16 September 2010

By Bill Wilson

Business reporter, BBC News

sports betting on sport is huge business.

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

Which figure is most likely to have grown further, with an estimated ₤ 1bn bet on the World Cup alone in the UK this summertime.

Meanwhile, German research study firm Sport & Markt estimates the total worldwide gaming market will be worth 263bn euros (₤ 220bn) by 2012, with much of that driven by web and sports betting gambling.
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But when the stability of occasions are hit the gambling market suffers, and profits are put under threat if clients can not bet with confidence.
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And there can have been couple of higher-profile sport wagering 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 only is it a substantial market in world company, it is one that is now on the front pages of papers."

Four Pakistan cricketers have been questioned by cops over spot-fixing allegations connecting to a test against England at Lord's last month.

Three of these gamers have 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, however was prohibited last week for 6 months for failing to report the prohibited technique to him to toss frames.

There are likewise 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 perceived as sincere, straight and reasonable that is excellent for wagering firms because people will invest cash wagering with self-confidence," he states.

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

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

'Education'

So what can be done to avoid 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 explains: "The only people 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 player organisations, such as the Professional Footballers' Association.

He believes that it is not sufficient to simply have deterrents, sanctions and disciplinary treatments, however that the way to tackle potential concerns around players is likewise through education.

Mr Taylor states guidelines require to be described plainly to players with clear examples, and by people they respect.

"Through educating players about sports betting you reinforce stability and that 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 guidance at the Football Association, concurs.

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

"It is imperative that sport is directly, and is seen to be directly," he includes.

"If it loses that then individuals do not desire to bet, that is not in gaming companies' interests, and it is not in our interests."

He stated that when a good reputation was lost, the damage to a sport was "enormous".

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

Mr Johnson states players have to be seen not to be cashing in on any inside knowledge, which he says might cause "brand 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 last the following spring.

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

'Overwhelmingly legal'

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

The Gambling Commission was set up under the Gambling Act 2005 to control commercial gambling in Great Britain.
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An of West Midlands police, Mr Tofiluk has responsibility for policing all wagering in the UK apart from spread wagering, which is the remit of the FSA.

"The overwhelming bulk of sports betting taking place 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 cheating has the prospective to undermine the integrity of a sport, and it also damages the industrial interests of sports betting bodies and sports betting."

The commission has developed an internal Sports Betting Intelligence Unit to get and share information to sporting authorities, sports betting firms and policing authorities.

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

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

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

'Vulnerabilities'

But in a two-and-a-half year period 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 says there are still eight continuous investigations, which much beneficial info has actually also been passed to sports betting authorities.

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

Meanwhile, he says a number of those seeking to cheat the sports betting market were educated about sports betting and sporting people, and about wagering operations and the motion of money.

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

Related internet links

World sports betting Law Report

ICC

Professional Players Federation

Professional Footballers' Association

The FA

Betfair

Sport & Markt

BLP
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Gambling Commission

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