Sport sports betting market looks to secure itself

16 September 2010

By Bill Wilson

Business press reporter, BBC News

sports betting on sport is huge business.

Sport England approximates the value of costs 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 summertime.

Meanwhile, German research study company Sport & Markt approximates the general international gambling market will be worth 263bn euros (₤ 220bn) by 2012, with much of that driven by web and sports betting.

But when the integrity of occasions are struck the gambling market suffers, and earnings are put under danger if consumers can not wager with self-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 talks about the sports betting gambling market now.

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

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

Three of these gamers have actually stated 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 champ John Higgins was cleared of match-fixing allegations, however was prohibited recently for six months for failing to report the prohibited technique 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, among the UK's biggest online sporting exchanges.

"If the sport is perceived as truthful, straight and fair that benefits wagering firms because individuals will spend cash sports betting with self-confidence," he states.

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

"That is since the perception is that 'cricket is now something we might need to be cautious 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 has to be on sportspersons and sportswomen.

As Simon Taylor of the Professional Players' Federation points out: "The only people who can repair a match are the competitors or the referee."

His organisation represents men 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 adequate to merely have deterrents, sanctions and disciplinary procedures, but that the way to tackle possible issues around players is likewise through education.

Mr Taylor says rules require to be described clearly to gamers with clear examples, and by individuals they respect.

"Through educating players about sports betting you reinforce integrity which is in everybody's interest," he adds.

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

'Brand damage'

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

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

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

FA guidelines indicate players are not enabled to bank on a competitors in which they are involved.

Mr Johnson says players have actually to be seen not to be capitalizing any inside knowledge, which he states 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 bank on a Manchester United v Chelsea cup last the following spring.

"We need to get over to gamers the reputational risk to the game," he says. "Once self-confidence has actually been harmed it is tough to get it back - mud sticks."

'Overwhelmingly legal'

If this represents the "carrot" technique, 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 business gambling in Great Britain.

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

"The frustrating majority of sports betting taking place through UK operators is legal and reasonable," he states.

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

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

The commission has actually established an internal Sports Betting Intelligence Unit to receive and disseminate 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 states.

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

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

'Vulnerabilities'

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

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

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

Meanwhile, he states a number of those wanting to cheat the sports betting wagering market 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 business."

Related internet links

World sports betting Law Report

ICC

Professional Players Federation

Professional Footballers' Association

The FA

Betfair

Sport & Markt

BLP

Gambling Commission