Sport Betting Industry Seeks To Protect Itself

Sport sports betting market wants to secure itself

16 September 2010

By Bill Wilson

Business press reporter, BBC News

Betting on sport is huge business.

Sport England estimates the value of costs on sport-related gaming in England grew from ₤ 1.7 bn in 1985 to ₤ 2.8 bn in 2008.

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

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

But when the integrity of occasions are hit the gambling market suffers, and incomes are put under risk if clients can not bet with confidence.

And there can have been couple of higher-profile sport 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 substantial market in world company, it is one that is now on the front pages of newspapers."

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

Three of these gamers have stated they will likewise 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 accusations, however was prohibited last week for six months for failing to report the prohibited 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 most significant online sporting exchanges.

"If the sport is perceived as honest, straight and reasonable that benefits sports betting firms because individuals will invest money betting with confidence," he states.

"If you take the Pakistan claims, although unrelated to the UK managed wagering industry ... it is not truly a favorable story for wagering in the UK.

"That is because the perception is that 'cricket is now something we may have to take care about'."

'Education'

So what can be done to prevent future scandals?

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

As Simon Taylor of the Professional Players' Federation explains: "The only people who can fix 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 treatments, however that the method to take on possible concerns around gamers is also through education.

Mr Taylor states rules need to be explained clearly to gamers with clear examples, and by individuals they respect.

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

"If gamers are more difficult 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 cure, and we likewise make a point of informing players 'you are going to be caught'."

"It is necessary 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 gaming companies' interests, and it is not in our interests."

He said that when a great credibility was lost, the damage to a sport was "incalculable".

FA guidelines imply players are not permitted to bank on a competitors in which they are involved.

Mr Johnson states gamers need to be seen not to be capitalizing any inside knowledge, which he says might cause "brand name damage" to football and its competitors.

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

"We have to get over to players the reputational threat to the video game," he states. "Once self-confidence has actually been damaged it is hard to get it back - mud sticks."

'Overwhelmingly legal'

If this represents the "carrot" method, then maybe 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 gaming in Great Britain.

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

"The overwhelming majority of sports betting wagering occurring through UK operators is legal and reasonable," he says.

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

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

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

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

"We will notify sports betting of our concerns, to assist avoid or curtail [prohibited] activity"

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

'Vulnerabilities'

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

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

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

Meanwhile, he says a number of those aiming to cheat the sports betting wagering industry were experienced about sports betting and sporting people, and about sports betting operations and the movement of money.

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