Sport wagering industry seeks to secure itself

16 September 2010

By Bill Wilson

Business press reporter, BBC News

sports betting on sport is huge business.
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Sport England the value of spending 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 grown further, with an estimated ₤ 1bn bet on the World Cup alone in the UK this summer season.

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

But when the integrity of occasions are hit the sports betting market suffers, and incomes are put under risk if customers can not bet with self-confidence.

And there can have been couple of 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 just is it a considerable market in world organization, it is one that is now on the front pages of papers."

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

Three of these gamers have actually said they will likewise challenge the corruption charges mounted against 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 banned recently for six months for failing to report the prohibited approach to him to throw frames.

There are also 2 other continuing investigations - not related to Mr Higgins - into snooker.

'Honest'

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

"If the sport is viewed as sincere, straight and fair that is excellent for wagering firms since people will invest money wagering with confidence," he says.

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

"That is because the understanding is that 'cricket is now something we might need to take care 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 sportspersons and sportswomen.

As Simon Taylor of the Professional Players' Federation points out: "The only people who can fix 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 believes that it is not sufficient to merely have deterrents, sanctions and disciplinary procedures, however that the method to tackle prospective issues around gamers is also through education.

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

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

"If players are more difficult 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 better than cure, and we also make a point of telling gamers 'you are going to be captured'."

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

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

He stated that when an excellent credibility was lost, the damage to a sport was "enormous".

FA rules mean gamers are not permitted to bet on a competitors in which they are involved.

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

So, even a Second Division player knocked out of the FA Cup in the fall can not bank on a Manchester United v Chelsea cup last the following spring.
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"We have to get over to players the reputational threat to the video game," he states. "Once self-confidence has been harmed it is tough to get it back - mud sticks."

'Overwhelmingly legal'

If this represents the "carrot" approach, then possibly Nick Tofiluk, director of regulation at the Gambling Commission, represents the "stick".

The Gambling Commission was set up 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 sports betting 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 fair," he states.

"But for some there is the temptation to ... corruptly disrupt the outcome of a sporting event.

"Such cheating has the potential to weaken the integrity of a sport, and it also hurts the commercial interests of sports betting bodies and sports betting wagering."

The commission has actually established an in-house Sports Betting Intelligence Unit to get and distribute info to sporting authorities, sports betting companies and policing authorities.

"Since 2007 we have actually experienced a significant insight into world of corrupt sports betting," he states.

"We will inform sports betting of our issues, to help avoid or curtail [prohibited] activity"

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

'Vulnerabilities'

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

However, Mr Tofiluk says there are still eight continuous examinations, which much beneficial information 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 examination "in favour of letting sports betting governing bodies take the lead".

Meanwhile, he says much of those aiming to cheat the sports betting wagering industry were knowledgeable about sports betting and sporting people, and about wagering operations and the movement of cash.

"They seek out the vulnerabilities of these to assist in their enterprises."

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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