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Sport sports betting market looks to safeguard itself
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16 September 2010

By Bill Wilson

Business reporter, BBC News

sports betting on sport is big service.

Sport England approximates the worth of costs on sport-related gambling 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 season.

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

But when the stability of events are hit the gaming industry suffers, and revenues are put under threat if consumers can not bet with self-confidence.

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

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

Three of these gamers have actually stated they will also challenge the corruption charges installed 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 banned last week for 6 months for stopping working to report the unlawful method to him to toss 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 reasonable that is good for wagering firms since people will spend money sports betting with confidence," he states.

"If you take the Pakistan accusations, although unassociated to the UK regulated sports betting market ... it is not truly a favorable story for sports betting in the UK.
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"That is due to the fact that the perception is that 'cricket is now something we may need to beware about'."

'Education'

So what can be done to prevent future scandals?

According to specialists at a World sports betting Law Report conference into sports betting, the focus needs to be on sportsmen and sportswomen.
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As Simon Taylor of the Professional Players' Federation explains: "The only individuals who can repair 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 player organisations, such as the Professional Footballers' Association.

He believes that it is not sufficient to simply have deterrents, sanctions and disciplinary treatments, however that the method to tackle potential problems around gamers is also through education.

Mr Taylor says guidelines need to be described clearly to gamers with clear examples, and by individuals they appreciate.

"Through educating players about sports betting you strengthen integrity which remains in everybody'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 regulatory legal guidance at the Football Association, agrees.

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

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

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

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

FA rules indicate gamers are not enabled to bank on a competitors in which they are involved.

Mr Johnson states players have actually to be seen not to be cashing in on any inside knowledge, which he says might cause "brand name 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 final the following spring.

"We have to overcome to gamers the reputational danger to the video game," he says. "Once confidence has actually been harmed it is difficult 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 sports betting in Great Britain.

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

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

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

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

The commission has established an in-house Sports Betting Intelligence Unit to get and share info to sporting authorities, wagering companies and policing authorities.

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

"We will inform sports betting of our issues, to assist prevent 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 period there has been just one criminal prosecution, a 24-year-old male who was cautioned for unfaithful in relation to greyhound racing.

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

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

Meanwhile, he says much of those wanting to cheat the sports betting wagering industry were experienced about sports betting and sporting individuals, and about sports betting operations and the motion of money.

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

Related web links

World sports betting Law Report

ICC

Professional Players Federation

Professional Footballers' Association

The FA

Betfair

Sport & Markt
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BLP

Gambling Commission
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