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Sport sports betting industry looks to protect itself

16 September 2010

By Bill Wilson

Business press reporter, BBC News

sports betting on sport is huge organization.
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Sport England approximates the worth of spending on sport-related gambling in England grew from ₤ 1.7 bn in 1985 to ₤ 2.8 bn in 2008.

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

Meanwhile, German research & Markt estimates the general worldwide gambling market will deserve 263bn euros (₤ 220bn) by 2012, with much of that driven by web and sports betting gambling.

But when the stability of occasions are hit the sports betting market suffers, and profits are put under risk if clients can not wager with self-confidence.

And there can have been couple of 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 market now.

"Not only is it a substantial market in world organization, it is one that is now on the front pages of newspapers."

Four Pakistan cricketers have actually been questioned by police over spot-fixing claims relating to a test against England at Lord's last month.

Three of these players have actually stated they will likewise 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 recently for 6 months for failing to report the prohibited technique to him to toss frames.

There are likewise 2 other continuing investigations - not associated to Mr Higgins - into snooker.

'Honest'

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

"If the sport is viewed as honest, straight and fair that benefits wagering firms since people will spend money wagering with confidence," he states.

"If you take the Pakistan claims, although unassociated to the UK controlled sports betting 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 might have to take care about'."
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'Education'

So what can be done to prevent future scandals?

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

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

His organisation represents men and women 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 enough to simply have deterrents, sanctions and disciplinary procedures, but that the method to tackle potential problems around gamers is likewise through education.

Mr Taylor states rules need to be discussed plainly to gamers with clear examples, and by people they appreciate.

"Through educating gamers about sports betting wagering you reinforce stability and that remains 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 better than treatment, and we likewise make a point of telling gamers 'you are going to be captured'."

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

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

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

FA guidelines suggest gamers are not permitted to bank on a competition in which they are involved.
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Mr Johnson says gamers have to be seen not to be cashing in on any inside understanding, which he says might trigger "brand name damage" to football and its competitors.

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

"We need to overcome to players the reputational threat to the 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 perhaps Nick Tofiluk, director of regulation at the Gambling Commission, represents the "stick".

The Gambling Commission was established under the Gambling Act 2005 to manage commercial sports betting in Great Britain.

An ex-chief constable of West Midlands cops, 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 majority of sports betting happening through UK operators is legal and fair," he states.

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

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

The commission has actually developed an in-house Sports Betting Intelligence Unit to get and disseminate info to sporting authorities, wagering companies and policing authorities.

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

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

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

However, Mr Tofiluk states there are still 8 continuous examinations, and that much useful info has actually also been passed to sports betting authorities.

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

Meanwhile, he states much of those seeking to cheat the sports betting market were well-informed about sports betting and sporting individuals, and about sports betting operations and the motion of cash.

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

Related internet links
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World sports betting Law Report

ICC

Professional Players Federation

Professional Footballers' Association

The FA

Betfair

Sport & Markt

BLP

Gambling Commission