Sport Betting Industry Wants To Protect Itself

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Sport wagering industry aims to safeguard itself

16 September 2010

By Bill Wilson

Business press reporter, BBC News

sports betting on sport is huge company.

Sport England approximates the worth of costs 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 further, with an estimated ₤ 1bn bet on the World Cup alone in the UK this summer season.

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

But when the integrity of events are struck the gaming market suffers, and revenues are put under risk if customers can not bet with confidence.

And there can have been few higher-profile sport wagering stories than those impacting cricket and snooker this year.

High-profile

As Sport & Markt's Gareth Moore observes: "Everyone talks about the sports betting market now.

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

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

Three of these players have stated they will likewise 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, however was prohibited last week for 6 months for stopping working to report the prohibited approach to him to toss frames.

There are also 2 other continuing investigations - not related to Mr Higgins - into snooker.

'Honest'

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

"If the sport is viewed as sincere, straight and fair that is good for sports betting firms because individuals will invest cash sports betting with confidence," he states.

"If you take the Pakistan claims, although unrelated to the UK regulated wagering industry ... it is not actually a positive story for wagering in the UK.

"That is because the perception is that 'cricket is now something we might have to beware 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 gambling, the focus needs 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 rivals or the referee."

His organisation represents males and women 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 treatments, but that the method to take on prospective problems around gamers is also through education.

Mr Taylor says rules need to be explained clearly to gamers with clear examples, and by people they appreciate.

"Through educating players about sports betting wagering you enhance stability which is in everybody's interest," he includes.

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

'Brand damage'

Matt Johnson, head of regulatory legal advice at the Football Association, concurs.

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

"It is imperative that sport is directly, and is seen to be straight," he includes.

"If it loses that then people do not want to bet, that is not in gaming firms' interests, and it is not in our interests."

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

FA rules indicate gamers are not enabled to bank on a competitors in which they are involved.

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

So, even a Second Division gamer knocked out of the FA Cup in the fall can not bank 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 been damaged it is hard to get it back - mud sticks."

'Overwhelmingly legal'

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

The Gambling Commission was established under the Gambling Act 2005 to regulate industrial gaming in Great Britain.

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

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

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

"Such unfaithful has the prospective to undermine the integrity of a sport, and it also damages the industrial interests of sports betting bodies and sports betting wagering."

The commission has actually established an in-house Sports Betting Intelligence Unit to get and disseminate details 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 alert sports betting of our concerns, to help prevent or cut [illegal] activity"

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

'Vulnerabilities'

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

However, Mr Tofiluk states there are still eight ongoing investigations, which much helpful information has actually likewise 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 think about terminating a criminal investigation "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 industry were educated about sports betting and sporting people, and about wagering operations and the movement of money.

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