Sport Betting Industry Wants To Protect Itself

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Sport wagering market seeks to protect itself

16 September 2010

By Bill Wilson

Business reporter, BBC News

sports betting on sport is substantial service.

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

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

Meanwhile, German research study firm Sport & Markt estimates the total global gaming market will deserve 263bn euros (₤ 220bn) by 2012, with much of that driven by internet and sports betting gaming.

But when the integrity of occasions are struck the gambling industry suffers, and revenues are put under hazard if clients can not bet with confidence.

And there can have been couple of higher-profile sport sports betting stories than those impacting 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 organization, it is one that is now on the front pages of newspapers."

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

Three of these players have 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 claims, but was prohibited recently for 6 months for stopping working to report the illegal method to him to toss frames.

There are also two other continuing examinations - unrelated to Mr Higgins - into snooker.

'Honest'

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

"If the sport is viewed as honest, straight and fair that is excellent for sports betting firms since individuals will invest cash wagering with confidence," he says.

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

"That is due to the fact that the perception is that 'cricket is now something we might have to be mindful 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 sportspersons and sportswomen.

As Simon Taylor of the Professional Players' Federation explains: "The only individuals who can fix 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 merely have deterrents, sanctions and disciplinary treatments, but that the method to tackle prospective issues around players is also through education.

Mr Taylor states rules require to be described plainly to players with clear examples, and by individuals they respect.

"Through educating players about sports betting you reinforce stability and that remains in everyone's interest," he includes.

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

'Brand damage'

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

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

"It is crucial that sport is straight, and is seen to be straight," he adds.

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

He stated that when an excellent track record was lost, the damage to a sport was "incalculable".

FA rules mean players are not permitted to wager on a competition in which they are involved.

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

So, even a Second 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 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" method, then maybe Nick Tofiluk, director of regulation at the Gambling Commission, represents the "stick".

The Gambling Commission was established under the Gambling Act 2005 to regulate commercial gaming in Great Britain.

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

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

"But for some there is the temptation to ... corruptly hinder the outcome of a sporting occasion.

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

The commission has established an in-house Sports Betting Intelligence Unit to get and share 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 states.

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

In May 2010, the commission likewise presented a private telephone hotline for those with details or suspicions.

'Vulnerabilities'

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

However, Mr Tofiluk states there are still 8 ongoing examinations, which much helpful info 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 consider stopping a criminal examination "in favour of letting sports betting governing bodies take the lead".

Meanwhile, he says a lot of those seeking to cheat the sports betting wagering market 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 assist in their enterprises."