Sport Betting Industry Looks To Protect Itself

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Sport sports betting industry aims to protect itself

16 September 2010

By Bill Wilson

Business reporter, BBC News

sports betting on sport is huge organization.

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.

Which figure is likely to have 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 worldwide gaming market will deserve 263bn euros (₤ 220bn) by 2012, with much of that driven by web and sports betting gaming.

But when the integrity of events are hit the sports betting industry suffers, and incomes are put under danger if clients can not wager 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 discuss the sports betting gambling 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 actually been questioned by authorities over spot-fixing accusations associating with a test versus 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 champ John Higgins was cleared of match-fixing allegations, but was banned last week for 6 months for stopping working to report the unlawful method to him to throw frames.

There are also two 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 perceived as honest, straight and reasonable that benefits wagering companies because individuals will invest cash sports betting with self-confidence," he states.

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

"That is because the perception is that 'cricket is now something we might have to beware about'."

'Education'

So what can be done to avoid future scandals?

According to professionals at a World sports betting Law Report conference into sports betting gambling, the focus needs to be on sportsmen 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 player organisations, such as the Professional Footballers' Association.

He believes that it is not adequate to merely have deterrents, sanctions and disciplinary procedures, but that the way to deal with potential issues around players is also through education.

Mr Taylor says guidelines need to be discussed clearly to gamers with clear examples, and by people they appreciate.

"Through informing gamers about sports betting you strengthen stability and that is in everybody's interest," he includes.

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

'Brand damage'

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

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

"It is imperative 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 gambling firms' interests, and it is not in our interests."

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

FA guidelines imply gamers are not permitted to wager on a competitors in which they are involved.

Mr Johnson says gamers need to be seen not to be capitalizing any inside understanding, which he states could cause "brand name damage" to football and its competitors.

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

"We need to overcome to gamers the reputational threat to the game," he states. "Once self-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 manage industrial gaming in Great Britain.

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

"The overwhelming bulk of sports betting wagering taking location through UK operators is legal and fair," he states.

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

"Such cheating has the potential to undermine the stability of a sport, and it likewise harms the business interests of sports betting bodies and sports betting wagering."

The commission has established an in-house Sports Betting Intelligence Unit to receive and disseminate details to sporting authorities, wagering companies 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 concerns, to help avoid or cut [prohibited] 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 prosecution, a 24-year-old guy who was cautioned for unfaithful in relation to greyhound racing.

However, Mr Tofiluk says there are still 8 ongoing examinations, and that much useful details has actually also been passed to sports betting authorities.

He stated that where an investigation by a sport governing body was quicker, and more expense efficient, then the commission would think about terminating 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 wagering industry were knowledgeable about sports betting and sporting individuals, and about wagering operations and the movement of money.

"They seek out the vulnerabilities of these to help in their business."