Sport Betting Industry Seeks To Protect Itself

Sport betting industry wants to safeguard itself

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16 September 2010

By Bill Wilson

Business press reporter, BBC News

Betting on sport is huge business.

Sport England estimates the worth of spending on sport-related gaming in England grew from ₤ 1.7 bn in 1985 to ₤ 2.8 bn in 2008.

Which figure is 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 approximates the overall international gaming market will be worth 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 betting industry suffers, and earnings are put under threat if customers can not bet with self-confidence.

And there can have been couple of higher-profile sport wagering 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 only is it a substantial market in world business, it is one that is now on the front pages of newspapers."

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

Three of these players have stated they will also challenge the corruption charges mounted against 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, however was banned recently for 6 months for failing to report the prohibited approach to him to toss frames.

There are also two other continuing examinations - not associated 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 honest, straight and reasonable that benefits sports betting companies because individuals will invest money sports betting with confidence," he states.

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

"That is due to the fact that the perception is that 'cricket is now something we may need to take care about'."

'Education'

So what can be done to avoid future scandals?

According to professionals at a World sports betting Law Report conference into sports betting gambling, the focus has to be on sportsmen and sportswomen.

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

His organisation represents guys and women in 15 sports betting in the UK, being an umbrella organisation for all gamer organisations, such as the Professional Footballers' Association.

He believes that it is inadequate to merely have deterrents, sanctions and disciplinary treatments, however that the method to tackle potential concerns around gamers is likewise through education.

Mr Taylor states guidelines need to be discussed plainly to gamers with clear examples, and by people they appreciate.

"Through educating gamers about sports betting you strengthen integrity which remains in everybody's interest," he adds.

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

'Brand damage'

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

"Prevention is 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 directly," he adds.

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

He stated that once a great reputation was lost, the damage to a sport was "enormous".

FA guidelines mean players are not allowed to wager on a competitors in which they are involved.

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

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

"We have to get over to players the reputational threat to the game," he says. "Once self-confidence has been damaged it is hard to get it back - mud sticks."

'Overwhelmingly legal'

If this represents the "carrot" technique, then maybe Nick Tofiluk, director of guideline at the Gambling Commission, represents the "stick".

The Gambling Commission was set up under the Gambling Act 2005 to regulate business sports betting in Great Britain.

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

"The overwhelming majority of sports betting 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 event.

"Such unfaithful has the potential to weaken the stability of a sport, and it also harms the industrial interests of sports betting bodies and sports betting wagering."

The commission has developed an internal Sports Betting Intelligence Unit to receive and distribute information to sporting authorities, betting companies and policing authorities.

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

"We will inform sports betting of our issues, to assist prevent or cut [illegal] activity"

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

'Vulnerabilities'

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

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

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

Meanwhile, he states a lot of those looking to cheat the sports betting wagering market were educated about sports betting and sporting people, and about wagering operations and the motion of cash.

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