Sport Betting Industry Looks To Protect Itself

Sport wagering industry wants to safeguard itself

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16 September 2010

By Bill Wilson

Business reporter, BBC News

sports betting on sport is substantial business.

Sport England approximates the value of spending 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 actually grown even more, with an estimated ₤ 1bn bet on the World Cup alone in the UK this summer season.

Meanwhile, German research study company Sport & Markt estimates the overall global gaming market will be worth 263bn euros (₤ 220bn) by 2012, with much of that driven by internet and sports betting gambling.

But when the stability of events are hit the sports betting market suffers, and earnings are put under hazard if clients can not wager with confidence.

And there can have been few higher-profile sport sports betting 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 only is it a significant market in world company, it is one that is now on the front pages of newspapers."

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

Three of these players have said they will also 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 accusations, however was banned recently for 6 months for failing to report the prohibited technique to him to toss frames.

There are also 2 other continuing examinations - not associated to Mr Higgins - into snooker.

'Honest'

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

"If the sport is viewed as honest, straight and fair that benefits wagering firms because people will invest cash wagering with self-confidence," he says.

"If you take the Pakistan claims, although unrelated to the UK managed wagering market ... it is not actually a favorable story for wagering in the UK.

"That is because the understanding is that 'cricket is now something we may need to be careful 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 sportspersons and sportswomen.

As Simon Taylor of the Professional Players' Federation explains: "The only people 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 simply have deterrents, sanctions and disciplinary treatments, but that the method to take on possible concerns around players is also through education.

Mr Taylor states rules need to be described plainly to gamers with clear examples, and by people they respect.

"Through informing players about sports betting wagering you strengthen stability which remains in everybody's interest," he adds.

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

'Brand damage'

Matt Johnson, head of regulative legal suggestions at the Football Association, concurs.

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

"It is important that sport is straight, and is seen to be directly," 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 stated that when a great reputation was lost, the damage to a sport was "incalculable".

FA rules imply gamers are not permitted to bank on a competition in which they are included.

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

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

"We need to overcome to players the reputational danger to the video game," he says. "Once confidence has actually been damaged it is hard 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 established under the Gambling Act 2005 to regulate business sports betting 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 sports betting, which is the remit of the FSA.

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

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

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

The commission has developed an in-house Sports Betting Intelligence Unit to receive and share details to sporting authorities, sports betting firms and policing authorities.

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

"We will notify sports betting of our concerns, to help avoid or curtail [illegal] activity"

In May 2010, the commission also presented a personal telephone hotline for those with info or suspicions.

'Vulnerabilities'

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

However, Mr Tofiluk states there are still 8 continuous examinations, and that much beneficial information has likewise been passed to sports betting authorities.

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

Meanwhile, he says much of those looking to cheat the sports betting wagering market were educated about sports betting and sporting individuals, and about wagering operations and the movement of cash.

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