Sport betting industry looks to secure itself

16 September 2010

By Bill Wilson

Business press reporter, BBC News

sports betting on sport is substantial service.

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

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

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.

But when the stability of events are hit the sports betting market suffers, and are put under danger if consumers can not bet with confidence.

And there can have been few higher-profile sport wagering stories than those impacting cricket and snooker this year.

High-profile

As Sport & Markt's Gareth Moore observes: "Everyone speak about the sports betting gambling market now.

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

Four Pakistan cricketers have been questioned by authorities over spot-fixing claims connecting to a test versus England at Lord's last month.
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Three of these players have stated they will likewise challenge the corruption charges mounted versus the trio by the sport governing body the International Cricket Council.

Meanwhile, three-times snooker world champion John Higgins was cleared of match-fixing accusations, but was prohibited last week for six months for failing to report the unlawful method to him to toss frames.

There are likewise 2 other continuing examinations - unrelated 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 reasonable that benefits sports betting companies due to the fact that people will spend money sports betting with confidence," he says.

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

"That is due to the fact that 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 specialists at a World sports betting Law Report conference into sports betting, the focus has to be on sportsmen and sportswomen.

As Simon Taylor of the Professional Players' Federation mentions: "The only individuals who can repair 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 thinks that it is inadequate to merely have deterrents, sanctions and disciplinary procedures, but that the method to tackle potential concerns around gamers is likewise through education.

Mr Taylor says rules need to be described plainly to gamers with clear examples, and by individuals they appreciate.

"Through informing gamers about sports betting you strengthen integrity which remains in everyone's interest," he adds.

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

'Brand damage'

Matt Johnson, head of regulatory legal recommendations at the Football Association, concurs.

"Prevention is better than cure, and we likewise make a point of telling 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 do not wish to wager, that is not in gaming companies' interests, and it is not in our interests."

He said that when a great credibility was lost, the damage to a sport was "enormous".

FA rules suggest gamers are not permitted to bank on a competition in which they are involved.

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

So, even a 2nd 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 states. "Once confidence has been damaged it is difficult to get it back - mud sticks."

'Overwhelmingly legal'
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If this represents the "carrot" approach, then maybe Nick Tofiluk, director of policy at the Gambling Commission, represents the "stick".

The Gambling Commission was established under the Gambling Act 2005 to control industrial gaming in Great Britain.
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An ex-chief constable of West Midlands cops, Mr Tofiluk has obligation for policing all sports betting in the UK apart from spread wagering, which is the remit of the FSA.

"The frustrating majority of sports betting wagering happening through UK operators is legal and reasonable," he states.
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"But for some there is the temptation to ... corruptly disrupt the result of a sporting occasion.

"Such cheating has the prospective 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 established an in-house Sports Betting Intelligence Unit to receive and share details to sporting authorities, wagering companies and policing authorities.

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

"We will notify sports betting of our issues, to assist prevent or cut [prohibited] activity"

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

'Vulnerabilities'

But in a two-and-a-half year period there has actually been just one criminal 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, which much beneficial info has likewise been passed to sports betting authorities.

He said that where an examination by a sport governing body was quicker, and more cost effective, then the commission would consider ceasing a criminal investigation "in favour of letting sports betting governing bodies take the lead".

Meanwhile, he states a number of those looking to cheat the sports betting wagering market were knowledgeable about sports betting and sporting individuals, and about wagering operations and the motion of cash.

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

Related internet links

World sports betting Law Report

ICC

Professional Players Federation

Professional Footballers' Association
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The FA

Betfair

Sport & Markt

BLP

Gambling Commission