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Sport wagering market wants to protect itself
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16 September 2010
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By Bill Wilson

Business reporter, BBC News

Betting on sport is big company.

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

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

But when the stability of events are hit the gaming market suffers, and revenues are put under threat if clients can not wager with 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 market now.

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

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 said they will also challenge the corruption charges installed 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, however was banned last week for 6 months for failing to report the prohibited technique to him to toss frames.

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

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

"If the sport is perceived as truthful, straight and fair that benefits sports betting firms because people will invest cash sports betting with self-confidence," he states.

"If you take the Pakistan claims, although unassociated to the UK regulated sports betting industry ... it is not actually a positive 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 be cautious about'."

'Education'

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

He believes that it is not adequate to merely have deterrents, sanctions and disciplinary procedures, however that the way to tackle prospective concerns around gamers is likewise through education.

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

"Through educating gamers about sports betting wagering you reinforce integrity which remains in everyone's interest," he adds.

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

'Brand damage'

Matt Johnson, head of regulative legal suggestions at the Football Association, concurs.

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

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

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

He stated that when a great track record was lost, the damage to a sport was "enormous".

FA rules suggest players are not permitted to bank on a competition in which they are included.

Mr Johnson states players have to be seen not to be capitalizing any inside knowledge, which he says could cause "brand name damage" to football and its competitors.

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

"We have to overcome to gamers the reputational danger to the game," he says. "Once self-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 business sports betting 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 betting, which is the remit of the FSA.

"The frustrating bulk of sports betting occurring through UK operators is legal and reasonable," he says.

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

"Such unfaithful has the prospective to weaken the integrity of a sport, and it also damages the industrial interests of sports betting bodies and sports betting."

The commission has actually developed an internal Sports Betting Intelligence Unit to get and distribute details to sporting authorities, betting companies and policing authorities.

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

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

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

'Vulnerabilities'

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

However, Mr Tofiluk says there are still 8 continuous investigations, and that much useful info has likewise been passed to sports betting authorities.

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

Meanwhile, he says much of those wanting to cheat the sports betting wagering market were experienced about sports betting and sporting people, and about betting operations and the motion of cash.

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

Related internet links

World sports betting Law Report

ICC

Professional Players Federation

Professional Footballers' Association

The FA
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Betfair

Sport & Markt

BLP
bit.ly
Gambling Commission

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