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Sport betting industry aims to secure itself

16 September 2010
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By Bill Wilson

Business reporter, BBC News

sports betting on sport is huge company.

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

Which 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.

Meanwhile, German research study firm Sport & Markt estimates the overall worldwide 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 occasions are hit the sports betting industry suffers, and profits are put under danger if customers can not wager with 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 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 police over spot-fixing claims connecting to a test versus England at Lord's last month.

Three of these gamers have actually said they will likewise challenge the corruption charges installed against the trio by the sport governing body the International Cricket Council.
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Meanwhile, three-times snooker world champion John Higgins was cleared of match-fixing allegations, however was banned last week for six months for failing to report the unlawful approach to him to throw frames.

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

'Honest'

David O'Reilly is legal counsel for Betfair, one of the UK's greatest online sporting exchanges.

"If the sport is viewed as honest, straight and reasonable that benefits sports betting firms since people will invest money sports betting with confidence," he says.

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

"That is due to the fact that the understanding is that 'cricket is now something we may need to take care about'."

'Education'

So what can be done to avoid future scandals?

According to specialists 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 points out: "The only people who can repair a match are the competitors or the referee."

His organisation represents guys and women in 15 sports betting in the UK, being an umbrella organisation for all gamer organisations, such as the Professional Footballers' Association.

He believes that it is inadequate to simply have deterrents, sanctions and disciplinary treatments, but that the method to tackle prospective concerns around players is likewise through education.

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

"Through informing players about sports betting wagering you reinforce stability which is in everyone'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 guidance at the Football Association, agrees.

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

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

"If it loses that then people don't wish to wager, that is not in sports betting firms' interests, and it is not in our interests."

He stated that once a great reputation was lost, the damage to a sport was "enormous".

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

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

So, even a 2nd Division gamer knocked out of the FA Cup in the fall can not wager on a Manchester United v Chelsea cup final the following spring.

"We have to overcome to gamers the reputational threat to the game," he states. "Once self-confidence has actually been damaged it is difficult to get it back - mud sticks."

'Overwhelmingly legal'

If this represents the "carrot" technique, then perhaps Nick Tofiluk, director of guideline at the Gambling Commission, represents the "stick".

The Gambling Commission was set up under the Gambling Act 2005 to regulate commercial gambling in Great Britain.

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

"The frustrating 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 hinder the outcome of a sporting event.

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

The commission has actually established an internal Sports Betting Intelligence Unit to receive and distribute info to sporting authorities, betting companies and policing authorities.

"Since 2007 we have actually experienced a considerable 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 private telephone hotline for those with info or suspicions.
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'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 cheating in relation to greyhound racing.

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

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

Meanwhile, he states a lot of those aiming to cheat the sports betting industry were educated about sports betting and sporting people, and about sports betting operations and the movement of money.

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

Related web links

World sports betting Law Report

ICC

Professional Players Federation

Professional Footballers' Association

The FA

Betfair

Sport & Markt
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BLP

Gambling Commission
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