Sport Betting Industry Wants To Protect Itself

Sport wagering industry aims to protect itself

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16 September 2010

By Bill Wilson

Business reporter, BBC News

Betting on sport is huge company.

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

And that figure is most likely to have actually grown even more, with an estimated ₤ 1bn bet on the World Cup alone in the UK this summer.

Meanwhile, German research study firm Sport & Markt approximates the general worldwide gambling 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 gambling industry suffers, and profits are put under hazard if customers can not wager 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 talks about the sports betting gambling market now.

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

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

Three of these players have stated they will likewise challenge the corruption charges mounted against the trio by the sport governing body the International Cricket Council.

Meanwhile, three-times snooker world champion John Higgins was cleared of match-fixing allegations, but was banned recently for 6 months for stopping working to report the unlawful technique to him to toss frames.

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

'Honest'

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

"If the sport is viewed as sincere, straight and reasonable that benefits sports betting firms since individuals will spend cash wagering with self-confidence," he states.

"If you take the Pakistan accusations, although unassociated to the UK managed sports betting market ... it is not really a positive story for wagering in the UK.

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

'Education'

So what can be done to prevent future scandals?

According to experts 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 points out: "The only individuals 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 inadequate to merely have deterrents, sanctions and disciplinary treatments, but that the method to tackle possible problems around gamers is likewise through education.

Mr Taylor states rules require to be discussed clearly to players with clear examples, and by people they appreciate.

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

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

'Brand damage'

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

"Prevention is better than cure, and we likewise make a point of telling players 'you are going to be captured'."

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

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

He said that when a great credibility was lost, the damage to a sport was "incalculable".

FA guidelines suggest players are not permitted to bank on a competition in which they are included.

Mr Johnson says players have actually to be seen not to be cashing in on any inside understanding, which he states could cause "brand damage" to football and its competitions.

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

"We need to get over to gamers the reputational danger to the game," he says. "Once confidence has actually been damaged it is tough to get it back - mud sticks."

'Overwhelmingly legal'

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

The Gambling Commission was set up under the Gambling Act 2005 to manage industrial sports betting 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 betting, which is the remit of the FSA.

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

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

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

The commission has actually developed an internal Sports Betting Intelligence Unit to get and disseminate info to sporting authorities, sports betting firms and policing authorities.

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

"We will inform sports betting of our concerns, to help prevent or reduce [illegal] 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 duration there has been simply one criminal prosecution, a 24-year-old male who was warned for unfaithful in relation to greyhound racing.

However, Mr Tofiluk says there are still 8 continuous examinations, which much helpful details has actually likewise been passed to sports betting authorities.

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

Meanwhile, he says a number of those aiming to cheat the sports betting market were well-informed 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."