Sport Betting Industry Wants To Protect Itself

Sport wagering market wants to safeguard itself

16 September 2010

By Bill Wilson

Business press reporter, BBC News

Betting on sport is big business.

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

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

But when the stability of occasions are hit the gambling market suffers, and earnings are put under threat if customers can not bet with self-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 discuss the sports betting market now.

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

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

Three of these gamers have said they will likewise challenge the corruption charges mounted versus the trio by the sport governing body the International Cricket Council.

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Meanwhile, three-times snooker world champion John Higgins was cleared of match-fixing claims, however was banned recently for six months for failing to report the illegal approach 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, among the UK's greatest online sporting exchanges.

"If the sport is viewed as truthful, straight and reasonable that benefits wagering firms due to the fact that people will spend money wagering with confidence," he says.

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

"That is because the perception is that 'cricket is now something we might need to be careful 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 repair a match are the competitors or the referee."

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

He believes that it is inadequate to merely have deterrents, sanctions and disciplinary procedures, but that the way to deal with potential issues around players is likewise through education.

Mr Taylor states rules need to be explained plainly to players with clear examples, and by people they appreciate.

"Through educating gamers about sports betting wagering you strengthen integrity and that remains in everyone's interest," he adds.

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

'Brand damage'

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

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

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

"If it loses that then individuals do not want to wager, that is not in gaming companies' interests, and it is not in our interests."

He said that as soon as an excellent credibility was lost, the damage to a sport was "enormous".

FA guidelines imply gamers are not enabled to bank on a competitors in which they are included.

Mr Johnson states gamers have actually to be seen not to be capitalizing any inside understanding, which he states could cause "brand name damage" to football and its competitions.

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

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

'Overwhelmingly legal'

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

The Gambling Commission was set up under the Gambling Act 2005 to manage commercial gambling in Great Britain.

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

"The frustrating majority of sports betting wagering occurring 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 potential to weaken the stability of a sport, and it likewise hurts the commercial interests of sports betting bodies and sports betting wagering."

The commission has actually established an internal Sports Betting Intelligence Unit to get and share details to sporting authorities, sports betting companies and policing authorities.

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

"We will alert sports betting of our issues, to assist avoid or curtail [illegal] activity"

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

'Vulnerabilities'

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

However, Mr Tofiluk states there are still 8 continuous investigations, which much useful information has also been passed to sports betting authorities.

He stated that where an investigation by a sport governing body was quicker, and more cost reliable, then the commission would consider ceasing a criminal investigation "in favour of letting sports betting governing bodies take the lead".

Meanwhile, he says many of those aiming to cheat the sports betting industry were knowledgeable about sports betting and sporting individuals, and about sports betting operations and the movement of cash.

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