Sport wagering industry seeks to safeguard itself

16 September 2010
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By Bill Wilson

Business reporter, BBC News

sports betting on sport is big company.

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

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

But when the integrity of occasions are struck the gambling market suffers, and profits are put under danger if clients can not bet with confidence.

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

High-profile

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

"Not only is it a significant market in world organization, 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 against England at Lord's last month.

Three of these gamers have actually stated they will likewise challenge the corruption charges installed versus the trio by the sport governing body the International Cricket Council.
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Meanwhile, three-times snooker world champion John Higgins was cleared of match-fixing allegations, but was prohibited last week for 6 months for stopping working to report the unlawful approach to him to toss frames.

There are also 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 viewed as honest, straight and reasonable that is excellent for wagering firms due to the fact that individuals will spend cash sports betting with confidence," he states.

"If you take the Pakistan allegations, although unassociated to the UK controlled wagering industry ... it is not really a positive story for wagering in the UK.

"That is since 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 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 explains: "The only people who can repair a match are the competitors or the referee."

His organisation represents males and women in 15 sports betting in the UK, being an umbrella organisation for all player organisations, such as the Professional Footballers' Association.

He thinks that it is not enough to simply have deterrents, sanctions and disciplinary procedures, but that the way to take on possible issues around players is likewise through education.

Mr Taylor says rules need to be discussed plainly to players with clear examples, and by individuals they appreciate.

"Through educating players about sports betting you strengthen integrity and that is in everyone's interest," he adds.

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

'Brand damage'

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

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

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

"If it loses that then people don't desire to bet, that is not in sports betting firms' interests, and it is not in our interests."

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

FA rules mean gamers are not permitted to bet on a competitors in which they are involved.

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

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

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

'Overwhelmingly legal'

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

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

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

"The overwhelming bulk of sports betting wagering occurring through UK operators is legal and reasonable," he says.

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

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

The commission has established an internal Sports Betting Intelligence Unit to get and share info to sporting authorities, wagering firms and policing authorities.

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

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

In May 2010, the commission also 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 warned for cheating in relation to greyhound racing.

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

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

Meanwhile, he states a number of those wanting to cheat the sports betting industry were well-informed about sports betting and sporting individuals, and about sports betting operations and the motion of cash.

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

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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