Sport Betting Industry Seeks To Protect Itself

Sport wagering market aims to protect itself

16 September 2010

By Bill Wilson

Business reporter, BBC News

Betting on sport is big service.

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

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

But when the stability of events are hit the sports betting industry suffers, and revenues are put under risk if clients 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 speak about the sports betting gambling market now.

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

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

Three of these players have stated they will also challenge the corruption charges installed 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 accusations, but was prohibited recently for 6 months for stopping working to report the unlawful technique to him to throw frames.

There are likewise two other continuing investigations - not related 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 honest, straight and reasonable that is good for wagering companies because individuals will spend cash sports betting with confidence," he says.

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

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

'Education'

So what can be done to prevent future scandals?

According to professionals 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 mentions: "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 gamer organisations, such as the Professional Footballers' Association.

He thinks that it is insufficient to simply have deterrents, sanctions and disciplinary procedures, however that the way to take on possible concerns around gamers is likewise through education.

Mr Taylor says guidelines require to be described clearly to players with clear examples, and by individuals they respect.

"Through informing players about sports betting you enhance integrity and that 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 regulative legal recommendations at the Football Association, concurs.

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

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

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

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

FA guidelines indicate players are not permitted to bank on a competitors in which they are included.

Mr Johnson states gamers need to be seen not to be capitalizing any inside knowledge, which he states could cause "brand damage" to football and its competitors.

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 last the following spring.

"We have to overcome to players the reputational danger to the game," he states. "Once confidence has been damaged it is hard to get it back - mud sticks."

'Overwhelmingly legal'

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

The Gambling Commission was established under the Gambling Act 2005 to control business gaming in Great Britain.

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

"The overwhelming bulk of sports betting happening through UK operators is legal and reasonable," he states.

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

"Such unfaithful has the prospective to weaken the integrity of a sport, and it likewise hurts the industrial interests of sports betting bodies and sports betting wagering."

The commission has established an in-house Sports Betting Intelligence Unit to get and share info to sporting authorities, wagering companies and policing authorities.

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

"We will alert sports betting of our concerns, to help prevent or curtail [prohibited] activity"

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

'Vulnerabilities'

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

However, Mr Tofiluk says there are still 8 ongoing investigations, which much beneficial details has actually likewise been passed to sports betting authorities.

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

Meanwhile, he states much of those wanting to cheat the sports betting wagering industry were educated about sports betting and sporting individuals, and about sports betting operations and the movement of money.

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