Sport wagering industry wants to safeguard itself

16 September 2010

By Bill Wilson
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Business reporter, BBC News

sports betting on sport is huge business.

Sport England approximates the worth of spending on sport-related sports betting in England grew from ₤ 1.7 bn in 1985 to ₤ 2.8 bn in 2008.

And that figure is likely to have grown even more, with an estimated ₤ 1bn bet on the World Cup alone in the UK this summertime.
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Meanwhile, German research company Sport & Markt estimates the overall global gambling market will be worth 263bn euros (₤ 220bn) by 2012, with much of that driven by web and sports betting gaming.

But when the stability of occasions are hit the gaming industry suffers, and profits are put under threat if consumers can not bet with confidence.

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

High-profile

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

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

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

Three of these gamers have stated 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 accusations, but was banned recently for 6 months for failing to report the prohibited method 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, one of the UK's biggest online sporting exchanges.

"If the sport is perceived as honest, straight and fair that benefits wagering companies due to the fact that individuals will invest money sports betting with confidence," he says.

"If you take the Pakistan claims, although unrelated to the UK controlled sports betting market ... it is not actually a favorable story for sports betting in the UK.

"That is because the understanding is that 'cricket is now something we may 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 explains: "The only individuals who can fix a match are the rivals or the referee."

His organisation represents men and ladies 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 inadequate to simply have deterrents, sanctions and disciplinary treatments, however that the way to take on potential concerns around players is likewise through education.

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

"Through informing players about sports betting wagering you reinforce stability and that remains in everybody's interest," he adds.

"If players are harder to corrupt then sport will be harder to corrupt."
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'Brand damage'

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

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

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

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

He stated that once a good track record was lost, the damage to a sport was "enormous".

FA guidelines imply gamers are not permitted to bank on a competitors in which they are included.

Mr Johnson says gamers have actually to be seen not to be cashing in on any inside knowledge, which he says might trigger "brand damage" to football and its competitors.

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

"We need to get over to players the reputational threat to the game," he states. "Once confidence has been damaged it is tough to get it back - mud sticks."

'Overwhelmingly legal'

If this represents the "carrot" technique, then possibly Nick Tofiluk, director of regulation at the Gambling Commission, represents the "stick".

The Gambling Commission was set up under the Gambling Act 2005 to manage 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 sports betting, which is the remit of the FSA.

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

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

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

The commission has developed an internal Sports Betting Intelligence Unit to receive and share info to sporting authorities, sports betting firms and policing authorities.

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

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

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

'Vulnerabilities'

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

However, Mr Tofiluk says there are still eight continuous examinations, which much useful info has actually likewise been passed to sports betting authorities.

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

Meanwhile, he says many of those wanting to cheat the sports betting wagering industry were educated about sports betting and sporting people, and about wagering operations and the motion of money.

"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
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BLP
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Gambling Commission

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