Sport wagering industry wants to secure itself

16 September 2010

By Bill Wilson

Business press reporter, BBC News

sports betting on sport is big organization.

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

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

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

But when the integrity of occasions are hit the betting industry suffers, and earnings are put under hazard if customers can not bet with confidence.

And there can have been couple of 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 substantial market in world company, it is one that is now on the front pages of papers."

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

Three of these gamers have actually said they will likewise 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 approach to him to throw frames.

There are also 2 other continuing examinations - not related 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 truthful, straight and fair that benefits wagering companies since individuals will invest cash betting with self-confidence," he states.

"If you take the Pakistan allegations, although unrelated to the UK managed sports betting market ... it is not actually a positive story for betting in the UK.

"That is since the perception is that 'cricket is now something we might need to be mindful about'."

'Education'
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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 mentions: "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 gamer organisations, such as the Professional Footballers' Association.

He thinks that it is insufficient to merely have deterrents, sanctions and disciplinary treatments, but that the way to tackle possible issues around players is also through education.
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Mr Taylor says rules need to be described clearly to players with clear examples, and by individuals they appreciate.

"Through informing players about sports betting wagering you enhance stability which remains in everybody's interest," he includes.

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

'Brand damage'
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Matt Johnson, head of regulatory legal advice at the Football Association, agrees.

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

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

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

He said that when an excellent track record was lost, the damage to a sport was "incalculable".

FA guidelines imply gamers are not enabled to wager on a competitors in which they are included.

Mr says players need to be seen not to be cashing in on any inside understanding, which he says might trigger "brand name damage" to football and its competitions.

So, even a 2nd Division gamer knocked out of the FA Cup in the autumn can not bank on a Manchester United v Chelsea cup final the following spring.

"We have to overcome to gamers the reputational threat to the game," he says. "Once confidence has been harmed it is hard to get it back - mud sticks."

'Overwhelmingly legal'

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

The Gambling Commission was set up under the Gambling Act 2005 to regulate commercial gambling in Great Britain.

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

"The frustrating bulk of sports betting taking location 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 cheating has the prospective to weaken the integrity of a sport, and it also harms the commercial interests of sports betting bodies and sports betting wagering."

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

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

"We will signal sports betting of our concerns, to assist avoid or cut [illegal] activity"

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

'Vulnerabilities'

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

However, Mr Tofiluk says there are still eight continuous examinations, and that much beneficial info has also been passed to sports betting authorities.

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

Meanwhile, he says a lot of those seeking to cheat the sports betting market were well-informed about sports betting and sporting individuals, 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

BLP

Gambling Commission