Sport Betting Industry Seeks To Protect Itself

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Sport wagering industry aims to secure itself

16 September 2010

By Bill Wilson

Business reporter, BBC News

sports betting on sport is huge service.

Sport England approximates the worth of spending 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 season.

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

But when the integrity of occasions are hit the gambling industry suffers, and revenues are put under hazard if customers can not wager with self-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 talks about the sports betting market now.

"Not only is it a considerable market in world business, 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 associating with a test against England at Lord's last month.

Three of these players have actually said they will likewise challenge the corruption charges installed 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 accusations, but was prohibited last week for six months for failing to report the unlawful approach to him to throw frames.

There are also two other continuing investigations - unrelated to Mr Higgins - into snooker.

'Honest'

David O'Reilly is legal counsel for Betfair, among the UK's biggest online sporting exchanges.

"If the sport is perceived as honest, straight and fair that benefits sports betting firms since people will invest cash wagering with confidence," he states.

"If you take the Pakistan claims, although unrelated to the UK controlled sports betting market ... it is not actually a positive story for sports betting in the UK.

"That is due to the fact that the perception is that 'cricket is now something we might need to beware 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 needs to be on sportspersons and sportswomen.

As Simon Taylor of the Professional Players' Federation mentions: "The only individuals who can repair 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 gamer organisations, such as the Professional Footballers' Association.

He believes that it is inadequate to simply have deterrents, sanctions and disciplinary treatments, however that the way to deal with prospective concerns around players is also through education.

Mr Taylor says rules need to be described clearly to gamers with clear examples, and by individuals they appreciate.

"Through educating gamers about sports betting wagering you strengthen integrity which is in everybody'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 guidance at the Football Association, concurs.

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

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

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

He stated that once an excellent credibility was lost, the damage to a sport was "enormous".

FA guidelines indicate gamers are not enabled to bet on a competition in which they are included.

Mr Johnson says gamers have to be seen not to be capitalizing any inside knowledge, which he states could cause "brand name damage" to football and its competitions.

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

"We need to get over to gamers the reputational threat to the video game," he says. "Once confidence has been harmed it is tough to get it back - mud sticks."

'Overwhelmingly legal'

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

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

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

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

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

"Such cheating has the potential to weaken the integrity of a sport, and it also harms the industrial interests of sports betting bodies and sports betting."

The commission has developed an in-house Sports Betting Intelligence Unit to get and share information to sporting authorities, wagering companies and policing authorities.

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

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

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

'Vulnerabilities'

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

However, Mr Tofiluk states there are still eight ongoing investigations, which much beneficial information has also been passed to sports betting authorities.

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

Meanwhile, he says a number of those aiming to cheat the sports betting wagering market were experienced about sports betting and sporting people, and about sports betting operations and the motion of money.

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