Sport Betting Industry Seeks To Protect Itself

Sport wagering industry aims to secure itself

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16 September 2010

By Bill Wilson

Business reporter, BBC News

Betting on sport is big company.

Sport England approximates the value of costs on sport-related 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 even more, with an estimated ₤ 1bn bet on the World Cup alone in the UK this summertime.

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

But when the integrity of occasions are struck the gambling industry suffers, and revenues are put under risk if clients can not bet with confidence.

And there can have been few 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 just is it a considerable market in world service, it is one that is now on the front pages of papers."

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

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Three of these gamers have stated they will also challenge the corruption charges mounted 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 failing to report the unlawful method to him to throw frames.

There are likewise two other continuing investigations - unrelated to Mr Higgins - into snooker.

'Honest'

David O'Reilly is legal counsel for Betfair, among the UK's greatest online sporting exchanges.

"If the sport is viewed as truthful, straight and reasonable that benefits wagering firms because people will spend cash wagering with self-confidence," he says.

"If you take the Pakistan allegations, although unrelated to the UK managed 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 might have to be cautious 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, 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 men and ladies in 15 sports betting in the UK, being an umbrella organisation for all gamer organisations, such as the Professional Footballers' Association.

He believes that it is not adequate to simply have deterrents, sanctions and disciplinary treatments, but that the method to deal with prospective concerns around players is also through education.

Mr Taylor says rules require to be described plainly to players with clear examples, and by people they appreciate.

"Through informing gamers about sports betting you reinforce stability which is in everyone's interest," he includes.

"If gamers 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 remedy, and we also make a point of telling gamers 'you are going to be caught'."

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

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

He stated that as soon as an excellent track record was lost, the damage to a sport was "enormous".

FA guidelines imply gamers are not enabled to bet on a competition in which they are included.

Mr Johnson states players have actually to be seen not to be cashing in on any inside understanding, which he says could trigger "brand 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 have to overcome to gamers the reputational threat to the video game," he states. "Once self-confidence has been harmed it is difficult to get it back - mud sticks."

'Overwhelmingly legal'

If this represents the "carrot" method, 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 manage 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 betting, which is the remit of the FSA.

"The frustrating bulk of sports betting occurring through UK operators is legal and reasonable," he says.

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

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

The commission has developed an internal Sports Betting Intelligence Unit to receive and distribute information to sporting authorities, wagering companies and policing authorities.

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

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

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

'Vulnerabilities'

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

However, Mr Tofiluk states there are still eight continuous investigations, and that much beneficial information has actually also been passed to sports betting authorities.

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

Meanwhile, he says many of those seeking to cheat the sports betting wagering market were knowledgeable about sports betting and sporting people, and about wagering operations and the movement of money.

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