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Sport wagering industry wants to secure itself
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16 September 2010
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By Bill Wilson

Business reporter, BBC News

sports betting on sport is substantial company.

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.

Which figure is most likely to have grown even more, with an estimated ₤ 1bn bet on the World Cup alone in the UK this summer.

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

But when the stability of events are hit the gaming 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 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 service, it is one that is now on the front pages of papers."

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

Three of these gamers have said they will also challenge the corruption charges mounted 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 allegations, but was banned last week for 6 months for failing to report the illegal approach to him to toss frames.

There are likewise 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 truthful, straight and reasonable that benefits sports betting companies because people will invest cash sports betting with self-confidence," he says.

"If you take the Pakistan allegations, although unrelated to the UK controlled sports betting industry ... it is not actually a favorable story for wagering in the UK.

"That is because the understanding is that 'cricket is now something we might 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, the focus needs 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 gamer organisations, such as the Professional Footballers' Association.

He thinks that it is insufficient to merely have deterrents, sanctions and disciplinary treatments, but that the way to tackle possible issues around gamers is likewise through education.

Mr Taylor says guidelines need to be discussed clearly to players with clear examples, and by people they respect.

"Through educating gamers about sports betting you enhance integrity which remains in everyone's interest," he adds.

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

'Brand damage'

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

"Prevention is better than cure, and we also make a point of informing gamers '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 individuals don't desire to bet, that is not in sports betting companies' interests, and it is not in our interests."

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

FA guidelines mean players are not permitted to bet on a competitors in which they are involved.

Mr Johnson states gamers need to be seen not to be cashing in on any inside knowledge, which he states could trigger "brand name damage" to football and its competitions.

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

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

'Overwhelmingly legal'

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

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

An ex-chief constable of West Midlands authorities, Mr Tofiluk has responsibility for policing all in the UK apart from spread sports betting, 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 outcome of a sporting occasion.

"Such cheating has the potential to undermine the integrity of a sport, and it also hurts 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 share info to sporting authorities, wagering firms and policing authorities.

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

"We will signal sports betting of our issues, to help prevent or cut [prohibited] activity"

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

'Vulnerabilities'

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

However, Mr Tofiluk states there are still eight ongoing investigations, and that much helpful information has actually likewise been passed to sports betting authorities.

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

Meanwhile, he states a number of those looking to cheat the sports betting wagering market were educated about sports betting and sporting individuals, and about wagering operations and the motion of money.

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

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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