Sport Betting Industry Aims To Protect Itself

Sport wagering market seeks to protect itself

16 September 2010

By Bill Wilson

Business reporter, BBC News

sports betting on sport is big service.

Sport England estimates the worth 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 likely to have actually grown even more, with an estimated ₤ 1bn bet on the World Cup alone in the UK this summer.

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

But when the stability of occasions are struck the gaming market suffers, and incomes are put under threat if clients can not bet with confidence.

And there can have been couple of higher-profile sport wagering stories than those impacting cricket and snooker this year.

High-profile

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

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

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

Three of these players have 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 allegations, but was banned recently for 6 months for stopping working to report the prohibited technique to him to toss frames.

There are likewise 2 other continuing examinations - unrelated to Mr Higgins - into snooker.

'Honest'

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

"If the sport is perceived as sincere, straight and reasonable that benefits wagering companies because people will invest cash sports betting with confidence," he says.

"If you take the Pakistan allegations, although unassociated to the UK regulated sports betting market ... it is not really a favorable story for wagering in the UK.

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

'Education'

So what can be done to avoid future scandals?

According to experts at a World sports betting Law Report conference into sports betting gambling, the focus needs 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 inadequate to simply have deterrents, sanctions and disciplinary procedures, however that the method to deal with potential problems around gamers is likewise through education.

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

"Through informing players about sports betting wagering you enhance integrity which remains in everybody's interest," he includes.

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

'Brand damage'

Matt Johnson, head of regulative legal recommendations at the Football Association, agrees.

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

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

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

He stated that once a great credibility was lost, the damage to a sport was "incalculable".

FA guidelines imply players are not allowed to bank on a competitors in which they are included.

Mr Johnson says players need to be seen not to be capitalizing any inside understanding, which he states could cause "brand damage" to football and its competitors.

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

"We have to get over to gamers the reputational danger to the game," he says. "Once self-confidence has actually been damaged it is hard to get it back - mud sticks."

'Overwhelmingly legal'

If this represents the "carrot" technique, 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 regulate business 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 overwhelming majority of sports betting taking location through UK operators is legal and reasonable," he says.

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

"Such unfaithful has the potential to undermine the integrity of a sport, and it also damages the business interests of sports betting bodies and sports betting wagering."

The commission has actually developed an in-house Sports Betting Intelligence Unit to get and disseminate info to sporting authorities, sports betting firms and policing authorities.

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

"We will signal sports betting of our concerns, to help avoid or reduce [unlawful] activity"

In May 2010, the commission likewise 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 criminal prosecution, a 24-year-old guy who was cautioned for unfaithful in relation to greyhound racing.

However, Mr Tofiluk says there are still eight continuous investigations, and that much useful details has actually also been passed to sports betting authorities.

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

Meanwhile, he states a lot of those seeking to cheat the sports betting wagering market were educated about sports betting and sporting individuals, and about wagering operations and the movement of cash.

"They seek out the vulnerabilities of these to help in their enterprises."