Sport Betting Industry Seeks To Protect Itself

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Sport wagering market looks to secure itself

16 September 2010

By Bill Wilson

Business reporter, BBC News

sports betting on sport is huge business.

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.

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

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

But when the stability of occasions are struck the gaming market suffers, and profits are put under danger 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 gambling market now.

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

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

Three of these gamers have actually said they will likewise challenge the corruption charges installed 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 claims, but was banned recently for 6 months for failing to report the prohibited method to him to toss frames.

There are likewise two other continuing examinations - unrelated 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 viewed as honest, straight and fair that benefits wagering companies since individuals will spend money sports betting with confidence," he states.

"If you take the Pakistan allegations, although unassociated to the UK regulated sports betting industry ... it is not truly a positive story for sports betting in the UK.

"That is due to the fact that the understanding is that 'cricket is now something we might have 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 gambling, the focus has to be on sportsmen and sportswomen.

As Simon Taylor of the Professional Players' Federation points out: "The only individuals who can fix a match are the rivals 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 not sufficient to merely have deterrents, sanctions and disciplinary procedures, but that the way to take on potential concerns around players is also through education.

Mr Taylor says guidelines require to be discussed plainly to players with clear examples, and by people they respect.

"Through informing players about sports betting wagering you enhance stability which remains in everyone's interest," he includes.

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

'Brand damage'

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

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

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

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

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

FA rules indicate players are not allowed to bank on a competitors in which they are involved.

Mr Johnson states gamers need to be seen not to be cashing in on any inside understanding, which he states might trigger "brand name damage" to football and its competitions.

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

"We need to overcome to players the reputational threat to the game," he states. "Once confidence has actually been damaged it is tough to get it back - mud sticks."

'Overwhelmingly legal'

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

The Gambling Commission was established under the Gambling Act 2005 to control commercial gambling in Great Britain.

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

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

"But for some there is the temptation to ... corruptly disrupt the result of a sporting occasion.

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

The commission has actually established an internal Sports Betting Intelligence Unit to receive and share information to sporting authorities, sports betting firms and policing authorities.

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

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

In May 2010, the commission likewise introduced 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 prosecution, a 24-year-old male who was cautioned for cheating in relation to greyhound racing.

However, Mr Tofiluk says there are still eight ongoing investigations, and that much helpful information has actually also been passed to sports betting authorities.

He stated that where an investigation by a sport governing body was quicker, and more cost effective, then the commission would think about discontinuing 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 experienced about sports betting and sporting people, and about sports betting operations and the movement of cash.

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