Sport Betting Industry Wants To Protect Itself

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Sport wagering industry seeks to secure itself

16 September 2010

By Bill Wilson

Business reporter, BBC News

sports betting on sport is huge service.

Sport England approximates the worth of costs on sport-related betting in England grew from ₤ 1.7 bn in 1985 to ₤ 2.8 bn in 2008.

Which figure is likely to have grown even more, with an approximated ₤ 1bn bet on the World Cup alone in the UK this summertime.

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

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

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

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

Three of these gamers have said they will also challenge the corruption charges installed versus 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, however was prohibited recently for six months for stopping working to report the unlawful method to him to toss frames.

There are also 2 other continuing examinations - 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 honest, straight and fair that is excellent for sports betting companies because individuals will invest cash wagering with self-confidence," he states.

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

"That is due to the fact that the understanding is that 'cricket is now something we may have to beware 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 has to be on sportspersons and sportswomen.

As Simon Taylor of the Professional Players' Federation points out: "The only people 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 player organisations, such as the Professional Footballers' Association.

He believes that it is insufficient to simply have deterrents, sanctions and disciplinary treatments, however that the way to tackle potential concerns around gamers is also through education.

Mr Taylor states guidelines require to be discussed plainly to gamers with clear examples, and by people they appreciate.

"Through informing players about sports betting wagering you strengthen integrity and that is in everybody's interest," he adds.

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

'Brand damage'

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

"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 individuals do not wish to wager, that is not in betting companies' interests, and it is not in our interests."

He said that when a good reputation was lost, the damage to a sport was "incalculable".

FA guidelines indicate gamers are not permitted to wager on a competitors in which they are included.

Mr Johnson states gamers have actually to be seen not to be cashing in on any inside knowledge, which he states might cause "brand name damage" to football and its competitors.

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

"We need to overcome to gamers the reputational risk to the game," he states. "Once self-confidence has actually been damaged it is hard 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 control commercial gaming in Great Britain.

An ex-chief constable of West Midlands police, Mr Tofiluk has obligation for policing all betting 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 interfere with the result of a sporting event.

"Such unfaithful has the prospective to weaken the integrity of a sport, and it likewise harms the commercial interests of sports betting bodies and sports betting wagering."

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

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

"We will signal sports betting of our issues, to assist prevent or cut [illegal] activity"

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

'Vulnerabilities'

But in a two-and-a-half year duration there has been just one criminal prosecution, a 24-year-old guy who was warned for cheating in relation to greyhound racing.

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

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

Meanwhile, he states much of those looking to cheat the sports betting wagering industry were knowledgeable about sports betting and sporting individuals, and about betting operations and the motion of money.

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