Sport wagering market wants to safeguard itself

16 September 2010
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By Bill Wilson

Business press reporter, BBC News

sports betting on sport is big company.

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

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

But when the integrity of events are struck the sports betting market suffers, and profits are put under danger if customers can not bet with confidence.

And there can have been few higher-profile sport sports betting stories than those affecting cricket and snooker this year.
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High-profile

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

"Not only is it a substantial market in world company, it is one that is now on the front pages of papers."

Four Pakistan cricketers have been questioned by police over spot-fixing allegations associating with a test against England at Lord's last month.

Three of these players have actually said 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 accusations, but was prohibited last week for 6 months for failing to report the illegal method to him to toss frames.

There are likewise two other continuing examinations - unrelated 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 viewed as sincere, straight and reasonable that benefits sports betting companies since individuals will spend money wagering with confidence," he states.

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

"That is because the perception is that 'cricket is now something we may need to take care about'."

'Education'

So what can be done to avoid future scandals?

According to professionals at a World sports betting Law Report conference into sports betting gambling, the focus needs to be on sportsmen and sportswomen.

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

His organisation represents guys and ladies 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 simply have deterrents, sanctions and disciplinary treatments, however that the method to tackle prospective issues around gamers is likewise through education.

Mr Taylor states rules need to be explained clearly to gamers with clear examples, and by individuals they respect.

"Through educating gamers about sports betting wagering you reinforce integrity and that is in everyone's interest," he includes.

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

'Brand damage'

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

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

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

"If it loses that then people do not wish 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 "enormous".

FA rules mean gamers are not allowed to bet on a competitors in which they are included.

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

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

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

'Overwhelmingly legal'

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

The Gambling Commission was established under the Gambling Act 2005 to manage business gambling in Great Britain.
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An ex-chief constable of West Midlands cops, Mr Tofiluk has duty for policing all wagering in the UK apart from spread wagering, which is the remit of the FSA.
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"The overwhelming bulk of sports betting happening through UK operators is legal and reasonable," he states.

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

"Such unfaithful has the possible to undermine the stability of a sport, and it likewise hurts the business interests of sports betting bodies and sports betting."

The commission has developed an in-house Sports Betting Intelligence Unit to get and disseminate details to sporting authorities, wagering firms and policing authorities.

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

"We will alert sports betting of our concerns, to assist prevent or curtail [unlawful] 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 criminal prosecution, a 24-year-old man who was cautioned for unfaithful in relation to greyhound racing.

However, Mr Tofiluk states there are still eight continuous investigations, which much beneficial information has likewise 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 consider discontinuing a criminal investigation "in favour of letting sports betting governing bodies take the lead".

Meanwhile, he says much of those aiming to cheat the sports betting market were knowledgeable about sports betting and sporting individuals, and about wagering operations and the motion of money.

"They look for 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
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Gambling Commission

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