Sport sports betting industry aims 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 value of costs on sport-related gaming in England grew from ₤ 1.7 bn in 1985 to ₤ 2.8 bn in 2008.
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And that figure is most likely to have actually grown further, with an estimated ₤ 1bn bet on the World Cup alone in the UK this summertime.

Meanwhile, German research study company 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 stability of occasions are hit the gambling industry suffers, and earnings are put under danger if clients can not wager with confidence.

And there can have been couple of higher-profile sport sports betting stories than those affecting cricket and snooker this year.

High-profile

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

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

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

Three of these gamers have said 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, however was banned last week for 6 months for stopping working to report the unlawful technique to him to throw frames.

There are likewise 2 other continuing examinations - not related 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 reasonable that benefits sports betting firms because people will spend money wagering with confidence," he says.
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"If you take the Pakistan accusations, although unassociated to the UK managed sports betting industry ... it is not really a positive story for in the UK.

"That is because the perception is that 'cricket is now something we might have to take care about'."

'Education'

So what can be done to avoid future scandals?

According to experts at a World sports betting Law Report conference into sports betting, the focus has to be on sportspersons and sportswomen.

As Simon Taylor of the Professional Players' Federation points out: "The only individuals who can fix a match are the competitors or the referee."

His organisation represents males and ladies 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 simply have deterrents, sanctions and disciplinary procedures, but that the method to tackle potential issues around gamers is also through education.
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Mr Taylor states guidelines need to be described clearly to players with clear examples, and by people they appreciate.

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

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

'Brand damage'

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

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

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

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

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

FA guidelines mean players are not permitted to wager on a competitors in which they are included.

Mr Johnson states gamers need to be seen not to be cashing in on any inside understanding, which he states might cause "brand damage" to football and its competitors.
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So, even a 2nd Division player knocked out of the FA Cup in the fall can not bank on a Manchester United v Chelsea cup final the following spring.

"We have to get over to gamers the reputational threat to the game," he says. "Once confidence has been damaged it is hard 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 established under the Gambling Act 2005 to regulate business gambling in Great Britain.

An ex-chief constable of West Midlands cops, 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 overwhelming majority of sports betting taking location through UK operators is legal and fair," he says.

"But for some there is the temptation to ... corruptly hinder the result of a sporting event.
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"Such cheating has the prospective to weaken the integrity of a sport, and it also hurts the business interests of sports betting bodies and sports betting wagering."

The commission has actually established an internal Sports Betting Intelligence Unit to receive and distribute details to sporting authorities, wagering companies and policing authorities.

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

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

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

'Vulnerabilities'

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

However, Mr Tofiluk says there are still 8 continuous investigations, which much beneficial information has likewise been passed to sports betting authorities.

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

Meanwhile, he says a lot of those looking to cheat the sports betting wagering market were well-informed about sports betting and sporting people, and about wagering operations and the movement of cash.

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

Related internet links

World sports betting Law Report

ICC

Professional Players Federation

Professional Footballers' Association

The FA

Betfair

Sport & Markt

BLP

Gambling Commission
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