Sport wagering industry seeks to protect itself

16 September 2010
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By Bill Wilson

Business reporter, BBC News

sports betting on sport is huge business.

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.

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

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

But when the stability of occasions are struck the gambling industry suffers, and earnings are put under hazard 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 gambling market now.

"Not just is it a in world organization, it is one that is now on the front pages of papers."

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

Three of these players 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 champion John Higgins was cleared of match-fixing accusations, but was prohibited recently for six months for failing to report the unlawful method to him to toss frames.

There are likewise 2 other continuing examinations - not related to Mr Higgins - into snooker.

'Honest'

David O'Reilly is legal counsel for Betfair, among the UK's most significant online sporting exchanges.

"If the sport is viewed as sincere, straight and fair that benefits betting firms because people will spend cash wagering with confidence," he states.
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"If you take the Pakistan allegations, although unrelated to the UK regulated betting market ... it is not actually a positive story for sports betting in the UK.

"That is due to the fact that the understanding is that 'cricket is now something we might have 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 fix a match are the rivals or the referee."

His organisation represents men and women 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 merely have deterrents, sanctions and disciplinary treatments, however that the way to tackle prospective issues around players is likewise through education.

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

"Through informing players about sports betting you strengthen integrity and that is in everyone's interest," he adds.

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

'Brand damage'

Matt Johnson, head of regulative legal advice at the Football Association, agrees.

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

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

"If it loses that then people do not wish to wager, that is not in gambling firms' interests, and it is not in our interests."

He stated that when a good credibility was lost, the damage to a sport was "incalculable".

FA guidelines suggest gamers are not enabled to bet on a competitors in which they are included.

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

So, even a Second Division player 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 get over to gamers the reputational danger to the video game," he states. "Once confidence has been damaged it is tough to get it back - mud sticks."

'Overwhelmingly legal'

If this represents the "carrot" method, then perhaps 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 business sports betting in Great Britain.

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

"The frustrating bulk of sports betting wagering taking place through UK operators is legal and fair," he states.

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

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

The commission has actually developed an in-house Sports Betting Intelligence Unit to receive and distribute info to sporting authorities, wagering firms and policing authorities.

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

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

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

'Vulnerabilities'

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

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

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

Meanwhile, he states much of those aiming to cheat the sports betting wagering market were well-informed about sports betting and sporting individuals, and about sports betting operations and the motion 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
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Gambling Commission

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