Sport Betting Industry Looks To Protect Itself

Sport wagering market aims to secure itself

16 September 2010

By Bill Wilson

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Business reporter, BBC News

sports betting on sport is substantial service.

Sport England estimates 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 likely to have grown even more, with an approximated ₤ 1bn bet on the World Cup alone in the UK this summer.

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

But when the integrity of events are struck the gaming market suffers, and profits are put under risk if customers can not wager with self-confidence.

And there can have been few higher-profile sport wagering 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 just is it a considerable market in world organization, it is one that is now on the front pages of newspapers."

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

Three of these gamers 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 accusations, however was banned recently for 6 months for stopping working to report the unlawful approach to him to toss frames.

There are also two other continuing investigations - 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 truthful, straight and reasonable that is excellent for sports betting companies due to the fact that people will invest cash sports betting with confidence," he states.

"If you take the Pakistan accusations, although unassociated to the UK controlled sports betting market ... it is not really a favorable story for wagering in the UK.

"That is due to the fact that the understanding is that 'cricket is now something we may need 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, the focus needs to be on sportspersons and sportswomen.

As Simon Taylor of the Professional Players' Federation explains: "The only individuals who can repair a match are the rivals or the referee."

His organisation represents men 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 not adequate to merely have deterrents, sanctions and disciplinary treatments, but that the method to tackle possible issues around gamers is likewise through education.

Mr Taylor states guidelines need to be described clearly to players with clear examples, and by people they appreciate.

"Through educating players about sports betting you reinforce stability and that remains in everyone's interest," he includes.

"If players 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 likewise make a point of telling gamers 'you are going to be caught'."

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

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

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

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

Mr Johnson says gamers need to be seen not to be capitalizing any inside understanding, which he says might trigger "brand damage" to football and its competitors.

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

"We have to overcome to players the reputational danger 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" approach, then perhaps Nick Tofiluk, director of policy at the Gambling Commission, represents the "stick".

The Gambling Commission was established under the Gambling Act 2005 to regulate industrial gaming in Great Britain.

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

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

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

"Such cheating has the prospective to undermine the stability of a sport, and it also damages the business interests of sports betting bodies and sports betting wagering."

The commission has actually developed an internal Sports Betting Intelligence Unit to receive and share details to sporting authorities, wagering companies and policing authorities.

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

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

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

'Vulnerabilities'

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

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

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

Meanwhile, he states a lot of those seeking to cheat the sports betting industry were knowledgeable about sports betting and sporting people, and about sports betting operations and the motion of money.

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