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Sport wagering industry looks to protect itself

16 September 2010

By Bill Wilson
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Business press reporter, BBC News

sports betting on sport is substantial organization.

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 most likely to have grown further, with an estimated ₤ 1bn bet on the World Cup alone in the UK this summer.

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

But when the stability of occasions are struck the sports betting industry suffers, and incomes are put under danger 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 talks about the sports betting gambling market now.

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

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

Three of these players have said they will likewise 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 illegal method to him to toss frames.

There are also two other continuing examinations - not associated 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 sincere, straight and reasonable that benefits sports betting companies since people will invest money wagering with confidence," he says.

"If you take the Pakistan claims, although unassociated to the UK managed wagering market ... it is not actually a positive story for wagering in the UK.

"That is since the perception is that 'cricket is now something we might have to be careful 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 individuals who can fix a match are the rivals 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 thinks that it is inadequate to merely have deterrents, sanctions and disciplinary procedures, however that the method to tackle potential issues around gamers is also through education.

Mr Taylor states guidelines require to be described clearly to players with clear examples, and by people they appreciate.

"Through educating players about sports betting you reinforce stability and that remains in everybody's interest," he adds.

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

'Brand damage'

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

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

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

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

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

FA guidelines suggest gamers are not allowed to bank on a competition in which they are involved.

Mr Johnson states gamers need to be seen not to be cashing in on any inside understanding, 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 final the following spring.

"We need to overcome to players the reputational threat to the video game," he says. "Once self-confidence has actually been damaged it is difficult 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".
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The Gambling Commission was established under the Act 2005 to control business gaming in Great Britain.

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

"The frustrating majority of sports betting wagering occurring through UK operators is legal and reasonable," he states.

"But for some there is the temptation to ... corruptly disrupt the result of a sporting event.
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"Such cheating has the potential to weaken the integrity of a sport, and it also damages the industrial interests of sports betting bodies and sports betting wagering."

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

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

"We will notify sports betting of our issues, to assist avoid or reduce [prohibited] activity"

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

'Vulnerabilities'

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

However, Mr Tofiluk states there are still eight continuous examinations, and that much helpful details 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 terminating a criminal investigation "in favour of letting sports betting governing bodies take the lead".

Meanwhile, he says numerous of those seeking to cheat the sports betting wagering industry were well-informed about sports betting and sporting people, and about sports betting operations and the movement 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

Betfair

Sport & Markt

BLP

Gambling Commission
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