Sport Betting Industry Looks To Protect Itself

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Sport wagering industry seeks to safeguard itself

16 September 2010

By Bill Wilson

Business press reporter, BBC News

sports betting on sport is substantial service.

Sport England approximates the worth 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 likely to have actually grown further, with an estimated ₤ 1bn bet on the World Cup alone in the UK this summertime.

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

But when the stability of events are hit the gaming industry suffers, and earnings are put under threat if clients can not bet 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 discuss 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 authorities over spot-fixing claims relating to a test against England at Lord's last month.

Three of these gamers have stated they will likewise challenge the corruption charges installed against 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, but was banned recently for 6 months for failing to report the illegal method 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, among the UK's biggest online sporting exchanges.

"If the sport is viewed as sincere, straight and fair that benefits wagering companies since people will spend cash wagering with confidence," he states.

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

"That is due to the fact that the understanding is that 'cricket is now something we may 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 individuals who can repair a match are the competitors or the referee."

His organisation represents males and females 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 insufficient to merely have deterrents, sanctions and disciplinary procedures, but that the method to tackle possible concerns around players is also through education.

Mr Taylor says guidelines require to be explained clearly to gamers with clear examples, and by people they appreciate.

"Through educating players about sports betting wagering you enhance stability which remains in everyone's interest," he includes.

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

'Brand damage'

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

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

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

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

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

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

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

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

"We have to overcome to gamers the reputational risk to the game," he says. "Once confidence has 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 established under the Gambling Act 2005 to regulate industrial gaming 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 majority of sports betting taking location through UK operators is legal and fair," he states.

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

"Such cheating has the prospective to undermine the integrity of a sport, and it also damages the commercial interests of sports betting bodies and sports betting."

The commission has developed an internal Sports Betting Intelligence Unit to get and disseminate 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 wagering," he says.

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

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

'Vulnerabilities'

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

However, Mr Tofiluk says there are still eight ongoing investigations, and that much useful info has likewise been passed to sports betting authorities.

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

Meanwhile, he states many of those looking to cheat the sports betting wagering market were knowledgeable 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 enterprises."