Sport sports betting industry looks to safeguard itself
16 September 2010
By Bill Wilson
Business reporter, BBC News
sports betting on sport is big business.
Sport England approximates the value of spending on sport-related gambling 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 approximated ₤ 1bn bet on the World Cup alone in the UK this summer.
Meanwhile, German research company Sport & Markt estimates the overall international 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 struck the sports betting market suffers, and profits are put under hazard if consumers can not bet with 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 talks about the sports betting market now.
"Not only is it a considerable market in world organization, it is one that is now on the front pages of papers."
Four Pakistan cricketers have been questioned by cops over spot-fixing claims associating with a test against England at Lord's last month.
Three of these players have stated they will also 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 allegations, however was prohibited last week for 6 months for stopping working to report the prohibited technique to him to throw frames.
There are likewise 2 other continuing investigations - 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 perceived as truthful, straight and reasonable that benefits wagering companies because people will invest money wagering with confidence," he states.
"If you take the Pakistan accusations, although unassociated to the UK managed sports betting market ... it is not truly a positive story for wagering in the UK.
"That is because the perception is that 'cricket is now something we might have to be mindful about'."
'Education'
So what can be done to prevent future scandals?
According to specialists at a World sports betting Law Report conference into sports betting, the focus has to be on sportsmen and sportswomen.
As Simon Taylor of the Professional Players' Federation points out: "The only individuals who can repair 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 player organisations, such as the Professional Footballers' Association.
He thinks that it is not sufficient to merely have deterrents, sanctions and disciplinary treatments, but that the way to deal with possible issues around gamers is also through education.
Mr Taylor says guidelines need to be described plainly to players with clear examples, and by people they respect.
"Through informing players about sports betting wagering you reinforce integrity which is in everyone's interest," he includes.
"If players are more difficult to corrupt then sport will be more difficult to corrupt."
'Brand damage'
Matt Johnson, head of regulative legal recommendations at the Football Association, agrees.
"Prevention is better than cure, and we likewise make a point of telling players 'you are going to be caught'."
"It is necessary 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 sports betting firms' interests, and it is not in our interests."
He stated that once a good reputation was lost, the damage to a sport was "enormous".
FA rules imply players are not permitted to bank on a competition 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 says could cause "brand damage" to football and its competitions.
So, even a 2nd Division player 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 get over to players the reputational danger to the game," he says. "Once confidence has actually been damaged it is hard to get it back - mud sticks."
'Overwhelmingly legal'
If this represents the "carrot" approach, then possibly Nick Tofiluk, director of regulation at the Gambling Commission, represents the "stick".
The Gambling Commission was established under the Gambling Act 2005 to control commercial gambling in Great Britain.
An ex-chief constable of West Midlands authorities, Mr Tofiluk has duty for policing all sports betting in the UK apart from spread sports betting, which is the remit of the FSA.
"The frustrating majority of sports betting taking place through UK operators is legal and fair," he says.
"But for some there is the temptation to ... corruptly interfere with the result of a sporting event.
"Such cheating has the prospective to weaken the stability of a sport, and it also harms the business interests of sports betting bodies and sports betting wagering."
The commission has developed an in-house Sports Betting Intelligence Unit to receive and share information to sporting authorities, sports betting companies and policing authorities.
"Since 2007 we have actually experienced a considerable insight into world of corrupt sports betting," he states.
"We will inform sports betting of our issues, to assist prevent or cut [prohibited] activity"
In May 2010, the commission likewise presented a personal telephone hotline for those with information or suspicions.
'Vulnerabilities'
But in a two-and-a-half year duration there has actually been just one prosecution, a 24-year-old male who was warned for cheating in relation to greyhound racing.
However, Mr Tofiluk states there are still 8 continuous investigations, which much beneficial info has likewise been passed to sports betting authorities.
He stated that where an investigation by a sport governing body was quicker, and more cost reliable, then the commission would think about discontinuing a criminal investigation "in favour of letting sports betting governing bodies take the lead".
Meanwhile, he says numerous of those wanting 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 enterprises."
Related web links
World sports betting Law Report
ICC
Professional Players Federation
Professional Footballers' Association
The FA
Betfair
Sport & Markt
BLP
Gambling Commission
