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Sport wagering market wants to safeguard itself

16 September 2010
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By Bill Wilson

Business reporter, BBC News

sports betting on sport is substantial service.

Sport England estimates the value of spending on sport-related sports betting 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 estimated ₤ 1bn bet on the World Cup alone in the UK this summer.

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

But when the integrity of events are struck the sports betting market suffers, and earnings are put under risk if customers can not bet with confidence.

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

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

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

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

Three of these players have actually stated they will also challenge the corruption charges mounted versus the trio by the sport governing body the International Cricket Council.

Meanwhile, three-times snooker world champ John Higgins was cleared of match-fixing accusations, but was prohibited last week for six months for stopping working to report the prohibited approach to him to toss frames.

There are also two 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 perceived as truthful, straight and reasonable that is good for sports betting companies due to the fact that individuals will spend money sports betting with confidence," he states.

"If you take the Pakistan claims, although unrelated to the UK managed wagering market ... it is not actually a positive story for wagering 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 prevent future scandals?

According to professionals 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 people who can repair a match are the rivals or the referee."

His organisation represents males and ladies 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 adequate to merely have deterrents, sanctions and disciplinary procedures, however that the method to tackle possible problems around players is likewise through education.

Mr Taylor says rules require to be discussed clearly to gamers with clear examples, and by individuals they respect.

"Through informing gamers about sports betting you reinforce integrity and that is in everyone's interest," he includes.

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

'Brand damage'

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

"Prevention is better than cure, and we likewise make a point of informing gamers 'you are going to be captured'."
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"It is imperative that sport is straight, and is seen to be straight," he includes.

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

He said that as soon as an excellent track record was lost, the damage to a sport was "enormous".

FA rules imply players are not allowed to bet on a competitors in which they are included.

Mr Johnson says gamers have 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 fall can not bank on a Manchester United v Chelsea cup last the following spring.

"We need to overcome to gamers the reputational danger to the video game," he states. "Once self-confidence has actually been harmed it is hard to get it back - mud sticks."

'Overwhelmingly legal'

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

The Gambling Commission was set up under the Gambling Act 2005 to manage commercial gambling in Great Britain.

An ex-chief constable of West Midlands authorities, Mr Tofiluk has responsibility for policing all wagering in the UK apart from spread wagering, which is the remit of the FSA.

"The frustrating majority of sports betting happening through UK operators is legal and fair," he says.

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

"Such unfaithful has the potential to weaken the stability of a sport, and it also hurts the business interests of sports betting bodies and sports betting."

The commission has actually established an internal Sports Betting Intelligence Unit to get and share info to sporting authorities, wagering companies and policing authorities.

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

"We will notify sports betting of our issues, to assist prevent or curtail [illegal] 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 period there has actually been just one prosecution, a 24-year-old male who was warned for cheating in relation to greyhound racing.

However, Mr Tofiluk says there are still eight ongoing investigations, which much helpful info has likewise been passed to sports betting authorities.

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

Meanwhile, he states a number of those seeking to cheat the sports betting industry were knowledgeable about sports betting and sporting individuals, and about wagering operations and the motion of money.

"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
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Betfair

Sport & Markt
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BLP

Gambling Commission
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