Sport Betting Industry Seeks To Protect Itself

Sport wagering industry wants to secure itself

16 September 2010

By Bill Wilson

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Business reporter, BBC News

sports betting on sport is huge service.

Sport England estimates the worth of costs on sport-related gambling 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 approximated ₤ 1bn bet on the World Cup alone in the UK this summer.

Meanwhile, German research company Sport & Markt approximates the overall worldwide 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 struck the sports betting market suffers, and incomes are put under risk if customers 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 talks about the sports betting market now.

"Not just is it a considerable market in world organization, it is one that is now on the front pages of papers."

Four Pakistan cricketers have been questioned by police over spot-fixing allegations associating with a test against England at Lord's last month.

Three of these players have actually said they will also challenge the corruption charges installed 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 claims, but was banned recently for 6 months for failing to report the prohibited technique to him to toss frames.

There are likewise two other continuing examinations - unrelated 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 viewed as sincere, straight and reasonable that benefits sports betting firms because individuals will spend money sports betting with self-confidence," he states.

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

"That is since the understanding is that 'cricket is now something we might have to beware about'."

'Education'

So what can be done to avoid future scandals?

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

As Simon Taylor of the Professional Players' Federation points out: "The only individuals who can repair a match are the rivals or the referee."

His organisation represents men and females 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 insufficient to merely have deterrents, sanctions and disciplinary procedures, but that the method to take on potential issues around players is also through education.

Mr Taylor states guidelines require to be discussed clearly to players with clear examples, and by people they appreciate.

"Through educating players about sports betting wagering you reinforce integrity and that is in everyone's interest," he includes.

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

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

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

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

FA rules suggest players are not permitted to wager on a competitors in which they are included.

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 player knocked out of the FA Cup in the fall can not bank on a Manchester United v Chelsea cup last the following spring.

"We have to get over to gamers the reputational danger to the video game," he says. "Once confidence has actually been damaged it is hard to get it back - mud sticks."

'Overwhelmingly legal'

If this represents the "carrot" approach, 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 business gambling in Great Britain.

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

"The overwhelming bulk of sports betting wagering taking location through UK operators is legal and fair," he states.

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

"Such unfaithful has the prospective to weaken the stability of a sport, and it also harms the business interests of sports betting bodies and sports betting."

The commission has established 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 experienced a substantial insight into world of corrupt sports betting," he says.

"We will notify sports betting of our issues, to help prevent or reduce [prohibited] activity"

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

'Vulnerabilities'

But in a two-and-a-half year period there has actually been just one criminal prosecution, a 24-year-old man who was warned for unfaithful in relation to greyhound racing.

However, Mr Tofiluk states there are still eight ongoing examinations, and that much useful details has likewise been passed to sports betting authorities.

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

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

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