Sport Betting Industry Seeks To Protect Itself

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Sport sports betting market wants to safeguard itself

16 September 2010

By Bill Wilson

Business reporter, BBC News

sports betting on sport is substantial company.

Sport England estimates the worth of costs 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 actually grown further, with an approximated ₤ 1bn bet on the World Cup alone in the UK this summertime.

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

But when the stability of occasions are hit the gambling industry suffers, and incomes are put under risk if consumers can not wager with 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 market now.

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

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

Three of these gamers have stated 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 champ John Higgins was cleared of match-fixing claims, but was prohibited last week for 6 months for failing to report the unlawful approach to him to toss frames.

There are also 2 other continuing investigations - unrelated to Mr Higgins - into snooker.

'Honest'

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

"If the sport is perceived as truthful, straight and reasonable that benefits wagering companies due to the fact that individuals will invest cash sports betting with confidence," he says.

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

"That is because the perception is that 'cricket is now something we may need to beware about'."

'Education'

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So what can be done to prevent future scandals?

According to specialists 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 mentions: "The only people 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 procedures, however that the way to tackle potential problems around gamers is likewise through education.

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

"Through informing gamers about sports betting you enhance integrity which remains in everybody'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 regulatory legal guidance at the Football Association, concurs.

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

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

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

He stated that when a great reputation was lost, the damage to a sport was "incalculable".

FA guidelines mean gamers are not permitted to bank on a competition in which they are included.

Mr Johnson says players need 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 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 overcome to players the reputational danger to the game," he states. "Once confidence has actually been damaged it is difficult 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 regulate commercial gaming in Great Britain.

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

"The frustrating majority 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 event.

"Such cheating has the possible to weaken the integrity of a sport, and it also harms the business interests of sports betting bodies and sports betting wagering."

The commission has established an internal Sports Betting Intelligence Unit to get and share information to sporting authorities, wagering companies and policing authorities.

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

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

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

'Vulnerabilities'

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

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

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

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

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