Sport Betting Industry Seeks To Protect Itself

Sport wagering industry aims to protect itself

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16 September 2010

By Bill Wilson

Business reporter, BBC News

sports betting on sport is big company.

Sport England approximates the value 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 further, with an estimated ₤ 1bn bet on the World Cup alone in the UK this summer.

Meanwhile, German research study company Sport & Markt estimates the general worldwide sports betting market will deserve 263bn euros (₤ 220bn) by 2012, with much of that driven by web and sports betting gaming.

But when the integrity of events are hit the gambling market suffers, and earnings are put under threat if customers can not bet with self-confidence.

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

High-profile

As Sport & Markt's Gareth Moore observes: "Everyone discuss the sports betting gambling 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 actually been questioned by cops over spot-fixing allegations connecting to a test versus England at Lord's last month.

Three of these players have said they will also 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 claims, however was banned recently for six months for failing to report the unlawful technique to him to throw frames.

There are also two other continuing investigations - not associated to Mr Higgins - into snooker.

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'Honest'

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

"If the sport is perceived as truthful, straight and reasonable that is great for sports betting firms due to the fact that people will invest cash wagering with self-confidence," he says.

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

"That is since the understanding is that 'cricket is now something we may have to beware 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 gambling, the focus has to be on sportspersons and sportswomen.

As Simon Taylor of the Professional Players' Federation explains: "The only people who can fix a match are the competitors or the referee."

His organisation represents guys 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 inadequate to merely have deterrents, sanctions and disciplinary treatments, but that the method to tackle potential issues around players is likewise through education.

Mr Taylor says guidelines require to be discussed clearly to gamers with clear examples, and by individuals they respect.

"Through educating gamers about sports betting wagering you strengthen integrity which is in everyone's interest," he adds.

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

'Brand damage'

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

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

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

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

He stated that as soon as an excellent reputation was lost, the damage to a sport was "incalculable".

FA guidelines suggest gamers are not allowed to bank on a competition in which they are involved.

Mr Johnson states gamers need to be seen not to be capitalizing any inside knowledge, which he states could 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 last the following spring.

"We need to get over to gamers the reputational risk to the game," he states. "Once self-confidence has been damaged it is difficult to get it back - mud sticks."

'Overwhelmingly legal'

If this represents the "carrot" method, 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 manage industrial gaming 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 wagering, which is the remit of the FSA.

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

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

"Such unfaithful has the prospective to weaken the integrity of a sport, and it also damages the commercial interests of sports betting bodies and sports betting."

The commission has 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 wagering," he states.

"We will alert sports betting of our concerns, to assist avoid or curtail [unlawful] activity"

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

'Vulnerabilities'

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

However, Mr Tofiluk says there are still 8 ongoing examinations, and that much beneficial information has actually also been passed to sports betting authorities.

He stated 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 seeking to cheat the sports betting wagering market were well-informed about sports betting and sporting individuals, and about wagering operations and the movement of money.

"They seek out the vulnerabilities of these to help in their business."