Sport Betting Industry Aims To Protect Itself

Sport sports betting industry aims to protect itself

16 September 2010

By Bill Wilson

Business reporter, BBC News

sports betting on sport is big company.

Sport England approximates the value of costs on sport-related gambling 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 summer.

Meanwhile, German research firm Sport & Markt approximates the general global gambling market will be worth 263bn euros (₤ 220bn) by 2012, with much of that driven by internet and sports betting gambling.

But when the stability of events are struck the sports betting market suffers, and incomes are put under threat if customers can not wager with self-confidence.

And there can have been couple of higher-profile sport sports betting 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 organization, it is one that is now on the front pages of newspapers."

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

Three of these gamers have said 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 claims, but was banned recently for 6 months for failing to report the illegal approach to him to toss frames.

There are also 2 other continuing examinations - not associated to Mr Higgins - into snooker.

'Honest'

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

"If the sport is viewed as truthful, straight and reasonable that benefits wagering firms due to the fact that people will spend cash wagering with confidence," he states.

"If you take the Pakistan accusations, although unassociated to the UK regulated sports betting 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 may have to be careful about'."

'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 sportsmen 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 gamer organisations, such as the Professional Footballers' Association.

He thinks that it is inadequate to simply have deterrents, sanctions and disciplinary treatments, however that the method to take on prospective issues around players is also through education.

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

"Through educating players about sports betting you strengthen stability which is in everybody's interest," he includes.

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

'Brand damage'

Matt Johnson, head of regulative legal advice at the Football Association, agrees.

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

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

"If it loses that then people don't want to wager, that is not in sports betting firms' interests, and it is not in our interests."

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

FA rules suggest gamers are not permitted to bet on a competition in which they are involved.

Mr Johnson states gamers need to be seen not to be capitalizing any inside understanding, which he says could cause "brand damage" to football and its competitions.

So, even a 2nd Division player knocked out of the FA Cup in the fall can not wager on a Manchester United v Chelsea cup final the following spring.

"We have to overcome to gamers the reputational risk to the game," he states. "Once confidence has actually been harmed it is tough to get it back - mud sticks."

'Overwhelmingly legal'

If this represents the "carrot" technique, then perhaps Nick Tofiluk, director of guideline 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.

An ex-chief constable of West Midlands cops, Mr Tofiluk has responsibility 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 wagering happening through UK operators is legal and fair," he says.

"But for some there is the temptation to ... corruptly hinder the outcome of a sporting event.

"Such unfaithful has the possible to weaken the stability of a sport, and it likewise hurts the business interests of sports betting bodies and sports betting wagering."

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

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

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

In May 2010, the commission also introduced a personal telephone hotline for those with information or suspicions.

'Vulnerabilities'

But in a two-and-a-half year period there has been simply one prosecution, a 24-year-old man who was cautioned for unfaithful in relation to greyhound racing.

However, Mr Tofiluk says there are still 8 continuous investigations, which much useful details has also been passed to sports betting authorities.

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

Meanwhile, he states much of those aiming to cheat the sports betting wagering market were experienced about sports betting and sporting individuals, and about sports betting operations and the movement of money.

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