Sport Betting Industry Aims To Protect Itself

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Sport wagering market seeks to safeguard itself

16 September 2010

By Bill Wilson

Business reporter, BBC News

sports betting on sport is substantial service.

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

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

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

But when the stability of events are struck the sports betting market suffers, and incomes are put under hazard if consumers can not wager 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 substantial market in world organization, it is one that is now on the front pages of papers."

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

Three of these gamers have actually stated 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, however was banned last week for six months for stopping working to report the unlawful technique to him to throw frames.

There are likewise two other continuing examinations - 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 reasonable that is great for sports betting companies since people will spend cash wagering with confidence," he states.

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

"That is due to the fact that the perception is that 'cricket is now something we may have to take care about'."

'Education'

So what can be done to avoid future scandals?

According to specialists at a World sports betting Law Report conference into sports betting gambling, the focus has to be on sportspersons and sportswomen.

As Simon Taylor of the Professional Players' Federation explains: "The only people who can repair a match are the rivals or the referee."

His organisation represents men and women 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 not enough to simply have deterrents, sanctions and disciplinary procedures, however that the way to deal with possible problems around players is also through education.

Mr Taylor states rules require to be explained clearly to players with clear examples, and by individuals they appreciate.

"Through informing gamers about sports betting you reinforce integrity which remains in everybody's interest," he includes.

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

'Brand damage'

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

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

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

"If it loses that then people do not wish to wager, that is not in gambling companies' interests, and it is not in our interests."

He said that when a great credibility was lost, the damage to a sport was "incalculable".

FA guidelines mean gamers are not enabled to bank on a competition in which they are involved.

Mr Johnson says players have actually to be seen not to be capitalizing any inside understanding, which he says might cause "brand name damage" to football and its competitions.

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

"We have to overcome to players the reputational risk to the game," he states. "Once confidence has been harmed it is tough to get it back - mud sticks."

'Overwhelmingly legal'

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

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

An ex-chief constable of West Midlands authorities, Mr Tofiluk has responsibility for policing all sports betting 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 fair," he states.

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

"Such cheating has the prospective to undermine the stability of a sport, and it likewise damages the business interests of sports betting bodies and sports betting."

The commission has actually developed an in-house Sports Betting Intelligence Unit to receive and distribute information to sporting authorities, wagering firms and policing authorities.

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

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

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

'Vulnerabilities'

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

However, Mr Tofiluk states there are still 8 ongoing investigations, which much useful details has actually also been passed to sports betting authorities.

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

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

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