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Sport betting market aims to protect itself
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16 September 2010
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By Bill Wilson

Business reporter, BBC News

Betting on sport is big organization.

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

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

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

But when the stability of events are struck the gaming industry suffers, and profits are put under risk if consumers can not bet with 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 gambling market now.

"Not only is it a substantial market in world organization, it is one that is now on the front pages of newspapers."

Four Pakistan cricketers have actually been questioned by authorities over spot-fixing allegations connecting to a test against England at Lord's last month.

Three of these gamers have actually said 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 allegations, but was banned recently for six months for failing to report the illegal method to him to throw frames.

There are likewise 2 other continuing examinations - unrelated to Mr Higgins - into snooker.

'Honest'

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

"If the sport is viewed as honest, straight and reasonable that benefits betting companies due to the fact that people will spend cash wagering with confidence," he says.

"If you take the Pakistan claims, although unrelated to the UK managed sports betting industry ... it is not really a positive story for sports betting in the UK.

"That is due to the fact that the perception is that 'cricket is now something we might need to be cautious 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 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 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 insufficient to merely have deterrents, sanctions and disciplinary procedures, but that the way to tackle potential problems around players is also through education.

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

"Through informing players about sports betting you reinforce stability which is in everybody's interest," he includes.

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

'Brand damage'

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

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

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

"If it loses that then people don't wish to wager, that is not in sports betting companies' interests, and it is not in our interests."

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

FA rules imply gamers are not permitted to wager on a competitors in which they are included.

Mr Johnson states gamers have to be seen not to be capitalizing any inside understanding, which he says could cause "brand name damage" to football and its competitions.

So, even a 2nd 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 need to overcome to gamers the reputational danger to the game," he says. "Once confidence has actually been damaged it is tough 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 established under the Gambling Act 2005 to control commercial betting in Great Britain.

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

"The overwhelming bulk of sports betting wagering occurring through UK operators is legal and fair," he says.

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

"Such unfaithful has the possible to undermine the integrity of a sport, and it likewise damages the commercial interests of sports betting bodies and sports betting."

The commission has established an internal Sports Betting Intelligence Unit to receive and share information to sporting authorities, betting companies and policing authorities.

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

"We will inform sports betting of our issues, to assist prevent or curtail [illegal] activity"

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

'Vulnerabilities'

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

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

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

Meanwhile, he states a lot of those looking to cheat the sports betting wagering market were educated about sports betting and sporting individuals, and about sports betting operations and the movement of money.

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

Related internet 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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