Sport Betting Industry Seeks To Protect Itself

Sport wagering market wants to safeguard itself

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16 September 2010

By Bill Wilson

Business reporter, BBC News

sports betting on sport is huge service.

Sport England estimates the worth of costs on sport-related sports betting 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 estimated ₤ 1bn bet on the World Cup alone in the UK this summer season.

Meanwhile, German research firm Sport & Markt estimates the total 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 integrity of events are hit the sports betting industry suffers, and revenues are put under hazard if customers can not bet with self-confidence.

And there can have been couple of higher-profile sport wagering stories than those impacting 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 significant market in world company, it is one that is now on the front pages of papers."

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

Three of these gamers have actually said they will also challenge the corruption charges installed against the trio by the sport governing body the International Cricket Council.

Meanwhile, three-times snooker world champion John Higgins was cleared of match-fixing claims, but was banned last week for six months for stopping working to report the unlawful method to him to toss frames.

There are also two other continuing examinations - unrelated 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 perceived as honest, straight and reasonable that is great for wagering companies because people will spend cash wagering with self-confidence," he says.

"If you take the Pakistan allegations, although unassociated to the UK regulated sports betting market ... it is not actually a favorable story for betting in the UK.

"That is due to the fact that the understanding is that 'cricket is now something we might need to beware 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 needs to be on sportspersons and sportswomen.

As Simon Taylor of the Professional Players' Federation mentions: "The only people who can repair 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 procedures, however that the method to take on potential problems around gamers is also through education.

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

"Through informing players about sports betting wagering you enhance integrity which is in everyone's interest," he adds.

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

'Brand damage'

Matt Johnson, head of regulatory legal recommendations at the Football Association, concurs.

"Prevention is much better than cure, and we likewise make a point of telling players 'you are going to be captured'."

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

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

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

FA guidelines imply players are not allowed to wager on a competition in which they are involved.

Mr Johnson says gamers need to be seen not to be capitalizing any inside understanding, which he states could 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 bank on a Manchester United v Chelsea cup final the following spring.

"We need to overcome to players the reputational threat 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" approach, then maybe Nick Tofiluk, director of guideline at the Gambling Commission, represents the "stick".

The Gambling Commission was established under the Gambling Act 2005 to regulate commercial gaming in Great Britain.

An ex-chief constable of West Midlands police, Mr Tofiluk has duty for policing all sports betting in the UK apart from spread wagering, which is the remit of the FSA.

"The frustrating majority 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 event.

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

The commission has developed an internal Sports Betting Intelligence Unit to get and disseminate details 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 states.

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

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

'Vulnerabilities'

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

However, Mr Tofiluk says there are still eight continuous examinations, which much useful information has likewise been passed to sports betting authorities.

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

Meanwhile, he states much of those wanting to cheat the sports betting market were knowledgeable about sports betting and sporting people, and about wagering operations and the movement of cash.

"They seek out the vulnerabilities of these to help in their business."