Sport wagering industry seeks to safeguard itself

16 September 2010

By Bill Wilson

Business press reporter, BBC News

sports betting on sport is big business.

Sport England estimates the value of spending on sport-related gaming in England grew from ₤ 1.7 bn in 1985 to ₤ 2.8 bn in 2008.
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And that figure is likely to have 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 approximates the overall international gaming market will deserve 263bn euros (₤ 220bn) by 2012, with much of that driven by internet and sports betting gaming.

But when the stability of occasions are hit the gambling market suffers, and revenues 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 speak about the sports betting gambling market now.

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

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

Three of these gamers have actually stated 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 champ John Higgins was cleared of match-fixing allegations, however was prohibited recently for 6 months for stopping working to report the unlawful method to him to toss frames.

There are likewise 2 other continuing investigations - unrelated 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 honest, straight and reasonable that benefits wagering companies since individuals will spend cash wagering with self-confidence," he states.

"If you take the Pakistan claims, although unrelated to the UK managed sports betting industry ... it is not really a positive story for sports betting in the UK.

"That is since the perception is that 'cricket is now something we may need to be mindful about'."

'Education'
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So what can be done to avoid ?

According to experts 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 mentions: "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 player organisations, such as the Professional Footballers' Association.

He thinks that it is not adequate to simply have deterrents, sanctions and disciplinary treatments, however that the way to deal with prospective problems around players is also through education.

Mr Taylor states guidelines need to be explained clearly to players with clear examples, and by individuals they respect.

"Through informing gamers about sports betting wagering you reinforce integrity which remains in everybody's interest," he adds.

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

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

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

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

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

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

FA rules mean players are not allowed to bank on a competition in which they are involved.

Mr Johnson states players need to be seen not to be capitalizing any inside knowledge, which he says might cause "brand damage" to football and its competitors.

So, even a Second Division player 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 get over to players the reputational threat to the game," he says. "Once self-confidence has actually been damaged it is difficult to get it back - mud sticks."

'Overwhelmingly legal'

If this represents the "carrot" method, then perhaps 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 gambling in Great Britain.

An ex-chief constable of West Midlands authorities, Mr Tofiluk has duty for policing all sports betting 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 fair," he states.

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

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

The commission has established an in-house Sports Betting Intelligence Unit to receive and distribute details to sporting authorities, sports betting firms and policing authorities.
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"Since 2007 we have actually experienced a significant insight into world of corrupt sports betting wagering," he states.

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

In May 2010, the commission also presented a confidential telephone hotline for those with info 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 warned for cheating in relation to greyhound racing.

However, Mr Tofiluk states there are still 8 ongoing investigations, and that much helpful details has actually likewise been passed to sports betting authorities.

He said that where an examination by a sport governing body was quicker, and more expense efficient, 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 looking to cheat the sports betting industry were well-informed about sports betting and sporting people, and about wagering operations and the motion of money.

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

Related internet links

World sports betting Law Report

ICC

Professional Players Federation

Professional Footballers' Association

The FA

Betfair

Sport & Markt

BLP

Gambling Commission