Sport wagering industry wants to secure itself

16 September 2010

By Bill Wilson

Business reporter, BBC News

Betting on sport is huge company.

Sport England estimates the value of spending 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 season.

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

But when the integrity of events are hit the sports betting industry suffers, and incomes are put under risk if consumers can not wager with self-confidence.

And there can have been couple of higher-profile sport sports betting stories than those affecting cricket and snooker this year.

High-profile
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As Sport & Markt's Gareth Moore observes: "Everyone talks about the sports betting gambling 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 relating to a test against England at Lord's last month.

Three of these players have 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, however was prohibited recently for 6 months for failing to report the illegal method to him to throw frames.

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

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

"If the sport is perceived as sincere, straight and reasonable that benefits wagering companies due to the fact that people will invest money sports betting with confidence," he states.

"If you take the Pakistan accusations, although unassociated to the UK managed wagering market ... it is not really a positive story for wagering in the UK.

"That is due to the fact that the understanding is that 'cricket is now something we might need 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 sportsmen and sportswomen.

As Simon Taylor of the Professional Players' Federation explains: "The only individuals 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 believes that it is insufficient to merely have deterrents, sanctions and disciplinary procedures, however that the method to take on potential concerns around gamers is likewise through education.

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

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

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

'Brand damage'
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Matt Johnson, head of regulative legal suggestions at the Football Association, concurs.

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

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

"If it loses that then individuals do not desire to wager, that is not in sports betting firms' interests, and it is not in our interests."

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

FA rules indicate gamers are not allowed to bet on a competitors in which they are involved.

Mr Johnson states players need to be seen not to be cashing in on any inside understanding, which he states could 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 overcome to players the reputational danger to the game," he states. "Once self-confidence has been damaged it is difficult to get it back - mud sticks."

'Overwhelmingly legal'

If this represents the "carrot" technique, 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 control business sports betting in Great Britain.
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An ex-chief constable of West Midlands police, Mr Tofiluk has duty for policing all sports betting in the UK apart from spread sports betting, which is the remit of the FSA.

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

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

"Such unfaithful has the prospective to undermine the stability of a sport, and it also hurts the industrial interests of sports betting bodies and sports betting."

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

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

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

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

'Vulnerabilities'

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

However, Mr Tofiluk states there are still 8 continuous investigations, which much beneficial information has also been passed to sports betting authorities.

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

Meanwhile, he says a number of those looking to cheat the sports betting wagering industry were well-informed about sports betting and sporting individuals, and about wagering operations and the motion of money.

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

Related internet links

World sports betting Law Report
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ICC

Professional Players Federation

Professional Footballers' Association

The FA

Betfair

Sport & Markt

BLP

Gambling Commission