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Sport sports betting industry aims to safeguard itself

16 September 2010

By Bill Wilson

Business press reporter, BBC News

sports betting on sport is huge organization.

Sport England approximates the value of costs on sport-related gambling in England grew from ₤ 1.7 bn in 1985 to ₤ 2.8 bn in 2008.

And that figure is most likely to have grown even more, with an approximated ₤ 1bn bet on the World Cup alone in the UK this summer.
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Meanwhile, German research study company Sport & Markt approximates the general global gaming 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 hit the betting industry suffers, and profits are put under threat if consumers can not wager with self-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 market now.

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

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

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

Meanwhile, three-times snooker world champion John Higgins was cleared of match-fixing claims, however was banned recently for six months for failing to report the unlawful method to him to throw frames.

There are likewise two other continuing examinations - not related to Mr Higgins - into snooker.

'Honest'

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

"If the sport is perceived as truthful, straight and reasonable that is good for sports betting firms due to the fact that individuals will spend money sports betting with confidence," he states.

"If you take the Pakistan allegations, although unrelated to the UK regulated wagering industry ... it is not truly a positive story for wagering in the UK.

"That is because the understanding is that 'cricket is now something we might need to be mindful about'."

'Education'

So what can be done to prevent 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 mentions: "The only people who can fix a match are the competitors or the referee."

His organisation represents guys and women in 15 sports betting in the UK, being an umbrella organisation for all gamer organisations, such as the Professional Footballers' Association.

He thinks that it is not adequate to merely have deterrents, sanctions and disciplinary procedures, however that the way to deal with prospective issues around gamers is also through education.

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

"Through educating players about sports betting you strengthen integrity which remains in everyone'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 regulatory legal advice at the Football Association, concurs.
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"Prevention is much better than cure, and we also make a point of informing players 'you are going to be caught'."

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

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

He said that once an excellent track record was lost, the damage to a sport was "incalculable".

FA rules suggest gamers are not allowed to bet on a competition in which they are involved.

Mr Johnson states gamers have actually to be seen not to be cashing in on any inside understanding, which he states might cause "brand damage" to football and its competitions.

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

"We need to overcome to players the reputational risk to the game," he says. "Once self-confidence has been harmed it is hard to get it back - mud sticks."
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'Overwhelmingly legal'

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

The Gambling Commission was established under the Gambling Act 2005 to control industrial betting in Great Britain.

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

"The overwhelming majority of sports betting wagering happening through UK operators is legal and fair," he states.

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

"Such cheating has the possible to undermine the integrity of a sport, and it also harms the commercial interests of sports betting bodies and sports betting."

The commission has established an internal Sports Betting Intelligence Unit to receive and disseminate information to sporting authorities, sports betting firms and policing authorities.
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"Since 2007 we have experienced a considerable insight into world of corrupt sports betting," he says.

"We will inform sports betting of our concerns, to help prevent or curtail [prohibited] activity"

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

'Vulnerabilities'

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

However, Mr Tofiluk says there are still 8 ongoing examinations, and that much beneficial information has also been passed to sports betting authorities.

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

Meanwhile, he states a number of those wanting to cheat the sports betting wagering industry were educated about sports betting and sporting people, and about sports betting operations and the movement of cash.

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

Related internet links
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World sports betting Law Report

ICC

Professional Players Federation

Professional Footballers' Association

The FA

Betfair

Sport & Markt
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BLP

Gambling Commission