Sport Betting Industry Looks To Protect Itself

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Sport wagering industry aims to secure itself

16 September 2010

By Bill Wilson

Business press reporter, BBC News

sports betting on sport is huge organization.

Sport England approximates the worth 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 most likely to have grown further, with an estimated ₤ 1bn bet on the World Cup alone in the UK this summer season.

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

But when the stability of events are struck the sports betting market suffers, and profits are put under threat if clients can not wager with confidence.

And there can have been couple of 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 service, it is one that is now on the front pages of newspapers."

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

Three of these players have actually 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 allegations, however was prohibited recently for 6 months for failing to report the unlawful method to him to throw frames.

There are likewise 2 other continuing examinations - unrelated to Mr Higgins - into snooker.

'Honest'

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

"If the sport is perceived as sincere, straight and reasonable that benefits wagering companies due to the fact that people will spend money wagering with confidence," he states.

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

"That is since the perception is that 'cricket is now something we might have to take care about'."

'Education'

So what can be done to avoid future scandals?

According to experts 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 fix a match are the rivals 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 adequate to merely have deterrents, sanctions and disciplinary procedures, but that the way to deal with prospective issues around players is also through education.

Mr Taylor says rules require to be explained plainly to players with clear examples, and by individuals they appreciate.

"Through educating players about sports betting you reinforce integrity which is in everybody's interest," he adds.

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

'Brand damage'

Matt Johnson, head of regulatory legal recommendations at the Football Association, agrees.

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

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

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

He stated that once a good track record was lost, the damage to a sport was "incalculable".

FA rules indicate gamers are not allowed to wager on a competition in which they are involved.

Mr Johnson states gamers need to be seen not to be cashing in on any inside knowledge, which he says could cause "brand name damage" to football and its competitions.

So, even a 2nd 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 need to overcome to players the reputational danger to the video game," he says. "Once self-confidence has been harmed it is hard to get it back - mud sticks."

'Overwhelmingly legal'

If this represents the "carrot" technique, then maybe 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 commercial 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 betting, which is the remit of the FSA.

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

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

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

The commission has established an internal 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 says.

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

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

'Vulnerabilities'

But in a two-and-a-half year period there has been just 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 investigations, and that much helpful info 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 ceasing a criminal investigation "in favour of letting sports betting governing bodies take the lead".

Meanwhile, he says a lot of those aiming to cheat the sports betting market were knowledgeable about sports betting and sporting individuals, and about sports betting operations and the movement of money.

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