Sport wagering industry looks to protect itself

16 September 2010

By Bill Wilson

Business reporter, BBC News

sports betting on sport is big service.

Sport England approximates 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 further, with an approximated ₤ 1bn bet on the World Cup alone in the UK this summer season.

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

But when the stability of occasions are hit the sports betting market suffers, and revenues are put under danger if customers can not wager with self-confidence.

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

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

Three of these gamers have actually 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 champion John Higgins was cleared of match-fixing allegations, however was banned recently for 6 months for failing 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, among the UK's greatest online sporting exchanges.

"If the sport is perceived as honest, straight and reasonable that is good for sports betting companies due to the fact that individuals will invest money sports betting with self-confidence," he says.

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

"That is due to the fact that the perception is that 'cricket is now something we may have to beware about'."

'Education'

So what can be done to prevent 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 mentions: "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 gamer organisations, such as the Professional Footballers' Association.

He believes that it is insufficient to simply have deterrents, sanctions and disciplinary treatments, but that the way to tackle prospective problems around gamers is also through education.

Mr Taylor says guidelines require to be discussed plainly to players with clear examples, and by people they appreciate.

"Through educating players about sports betting wagering you strengthen integrity and that is in everybody's interest," he adds.

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

'Brand damage'

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

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

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

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

He said that when an excellent reputation was lost, the damage to a sport was "incalculable".

FA guidelines suggest gamers are not enabled to bank on a competition in which they are included.

Mr Johnson states players need to be seen not to be capitalizing any inside knowledge, which he says might trigger "brand damage" to football and its competitions.

So, even a Second Division player knocked out of the FA Cup in the autumn can not bank on a Manchester United v Chelsea cup final the following spring.

"We have to get over to gamers the reputational danger to the game," he says. "Once confidence has actually been harmed it is hard to get it back - mud sticks."

'Overwhelmingly legal'

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

The Gambling Commission was established under the Gambling Act 2005 to manage industrial sports betting in Great Britain.

An ex-chief constable of West Midlands cops, 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 place through UK operators is legal and reasonable," he says.

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

"Such cheating has the possible to weaken the stability of a sport, and it also damages 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 info to sporting authorities, wagering companies and policing authorities.

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

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

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

'Vulnerabilities'

But in a two-and-a-half year duration there has actually 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 continuous investigations, which much helpful info has actually likewise been passed to sports betting authorities.

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

Meanwhile, he says numerous of those aiming to cheat the sports betting market were educated about sports betting and sporting people, and about wagering operations and the movement of cash.

"They look for 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

BLP

Gambling Commission