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Sport betting industry looks to safeguard itself

16 September 2010

By Bill Wilson

Business press reporter, BBC News

sports betting on sport is big service.

Sport England approximates the value of costs on sport-related sports betting 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 summertime.

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

But when the integrity of occasions are struck the gaming industry suffers, and incomes are put under hazard if clients can not wager with confidence.

And there can have been few 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 gambling market now.

"Not just is it a considerable 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 claims connecting to a test against England at Lord's last month.

Three of these gamers have actually said 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 champion John Higgins was cleared of match-fixing accusations, however was banned last week for 6 months for failing to report the unlawful approach to him to toss frames.

There are likewise two other continuing investigations - 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 sincere, straight and reasonable that is great for betting companies since individuals will invest money sports betting with self-confidence," he says.

"If you take the Pakistan claims, although unrelated to the UK managed sports betting market ... it is not really a favorable story for sports betting in the UK.

"That is since 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 specialists 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 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 insufficient to merely have deterrents, sanctions and disciplinary treatments, but that the method to tackle possible concerns around gamers is also through education.

Mr Taylor states rules require to be described plainly to gamers with clear examples, and by they appreciate.

"Through informing gamers about sports betting you enhance integrity and that is in everybody's interest," he adds.

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

'Brand damage'

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

"Prevention is better than treatment, and we likewise make a point of telling players 'you are going to be captured'."

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

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

He stated that when a good reputation was lost, the damage to a sport was "incalculable".

FA rules indicate players are not allowed to bank on a competition in which they are included.

Mr Johnson says gamers need to be seen not to be cashing in on any inside understanding, which he states might trigger "brand name damage" to football and its competitions.

So, even a 2nd Division player knocked out of the FA Cup in the autumn can not wager on a Manchester United v Chelsea cup final the following spring.

"We need to overcome to gamers the reputational risk to the game," he says. "Once self-confidence has been damaged it is hard to get it back - mud sticks."

'Overwhelmingly legal'

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

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

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

"The overwhelming majority of sports betting taking place through UK operators is legal and reasonable," he says.

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

"Such cheating has the possible to weaken the integrity of a sport, and it likewise hurts the business interests of sports betting bodies and sports betting wagering."
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The commission has established an in-house Sports Betting Intelligence Unit to receive and share details to sporting authorities, sports betting firms and policing authorities.

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

"We will signal sports betting of our concerns, to assist prevent or cut [illegal] activity"

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

'Vulnerabilities'

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

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

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

Meanwhile, he states much of those looking to cheat the sports betting industry were well-informed about sports betting and sporting individuals, and about wagering operations and the motion 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
bit.ly
BLP

Gambling Commission