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Sport betting industry aims to protect itself

16 September 2010

By Bill Wilson

Business press reporter, BBC News

Betting on sport is big company.

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

Which figure is most likely to have actually grown further, with an estimated ₤ 1bn bet on the World Cup alone in the UK this summertime.

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

But when the integrity of events are struck the gambling market suffers, and profits are put under threat if customers 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.
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High-profile

As Sport & Markt's Gareth Moore observes: "Everyone talks about the sports betting market now.

"Not just is it a substantial market in world company, it is one that is now on the front pages of newspapers."
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Four Pakistan cricketers have actually been questioned by authorities over spot-fixing claims connecting to a test against England at Lord's last month.

Three of these gamers have actually said they will likewise challenge the corruption charges mounted 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 allegations, but was banned recently for six months for stopping working to report the prohibited approach to him to throw frames.

There are also two other continuing examinations - 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 perceived as honest, straight and fair that is great for wagering firms since individuals will invest money wagering with confidence," he states.

"If you take the Pakistan accusations, although unassociated to the UK controlled wagering industry ... it is not truly a favorable story for wagering in the UK.

"That is since the perception is that 'cricket is now something we may have to be mindful 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, the focus needs to be on sportspersons and sportswomen.

As Simon Taylor of the Professional Players' Federation points out: "The only people who can fix 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 thinks that it is not enough to merely have deterrents, sanctions and disciplinary treatments, but that the method to take on potential problems around gamers is likewise through education.

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

"Through educating gamers about sports betting wagering you strengthen integrity which is in everybody's interest," he adds.

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

'Brand damage'

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

"Prevention is much better than remedy, and we likewise make a point of telling players 'you are going to be caught'."
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"It is important that sport is directly, and is seen to be straight," he includes.

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

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

FA guidelines mean gamers are not permitted to bank on a competition in which they are involved.

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

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

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

'Overwhelmingly legal'

If this represents the "carrot" approach, then maybe Nick Tofiluk, director of policy 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 police, Mr Tofiluk has duty for policing all wagering in the UK apart from spread wagering, which is the remit of the FSA.

"The frustrating majority of sports betting wagering happening through UK operators is legal and fair," he states.

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

"Such cheating has the potential to undermine the integrity of a sport, and it also harms the commercial interests of sports betting bodies and sports betting."
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The commission has actually developed an in-house Sports Betting Intelligence Unit to receive and disseminate information to sporting authorities, sports betting firms and policing authorities.

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

"We will notify sports betting of our concerns, to or reduce [unlawful] activity"

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

'Vulnerabilities'

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

However, Mr Tofiluk says there are still 8 continuous examinations, and that much helpful information has also 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 a lot of those seeking to cheat the sports betting wagering industry were knowledgeable about sports betting and sporting people, and about sports betting operations and the motion of cash.

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

Related web links

World sports betting Law Report

ICC

Professional Players Federation

Professional Footballers' Association

The FA

Betfair

Sport & Markt

BLP

Gambling Commission
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