Sport betting industry looks to protect itself

16 September 2010

By Bill Wilson

Business press reporter, BBC News

Betting on sport is huge organization.
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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 actually grown further, with an estimated ₤ 1bn bet on the World Cup alone in the UK this summertime.

Meanwhile, German research company Sport & Markt estimates the overall global betting market will be worth 263bn euros (₤ 220bn) by 2012, with much of that driven by web and sports betting.

But when the integrity of events are hit the gaming industry suffers, and incomes are put under threat if customers can not bet with confidence.

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

High-profile

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

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

Four Pakistan cricketers have been questioned by cops over spot-fixing claims associating with a test versus England at Lord's last month.

Three of these gamers have 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 claims, but was prohibited last week for six months for failing to report the unlawful technique to him to throw 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 biggest online sporting exchanges.

"If the sport is perceived as truthful, straight and reasonable that is excellent for betting firms since people will spend money wagering with self-confidence," he says.

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

"That is because 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, the focus has to be on sportsmen 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 in 15 sports betting in the UK, being an umbrella organisation for all gamer organisations, such as the Professional Footballers' Association.

He believes that it is inadequate to simply have deterrents, sanctions and disciplinary treatments, but that the way to take on prospective concerns around gamers is likewise through education.

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

"Through educating gamers about sports betting you strengthen stability and that is in everybody's interest," he adds.

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

'Brand damage'

Matt Johnson, head of regulative legal guidance at the Football Association, agrees.
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"Prevention is better than treatment, and we likewise make a point of telling gamers 'you are going to be captured'."

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

"If it loses that then individuals don't desire to wager, that is not in sports betting companies' interests, and it is not in our interests."

He said that as soon as a good reputation was lost, the damage to a sport was "enormous".

FA guidelines mean gamers are not permitted to wager on a competition in which they are involved.
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Mr Johnson says gamers have 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 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.
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"We need to overcome to players the reputational risk to the video game," he states. "Once self-confidence has actually been harmed it is hard to get it back - mud sticks."

'Overwhelmingly legal'

If this represents the "carrot" technique, then possibly 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 sports betting in Great Britain.

An ex-chief constable of West Midlands cops, Mr Tofiluk has responsibility for policing all wagering in the UK apart from spread sports betting, which is the remit of the FSA.
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"The frustrating bulk of sports betting wagering occurring through UK operators is legal and fair," he states.

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

"Such cheating has the possible to undermine the integrity of a sport, and it likewise damages the industrial interests of sports betting bodies and sports betting."

The commission has actually developed an internal Sports Betting Intelligence Unit to receive and disseminate info to sporting authorities, betting firms and policing authorities.

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

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

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

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

However, Mr Tofiluk states there are still eight continuous investigations, which much beneficial info 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 ceasing a criminal examination "in favour of letting sports betting governing bodies take the lead".

Meanwhile, he states numerous of those wanting to cheat the sports betting wagering industry were educated about sports betting and sporting individuals, and about betting operations and the movement of cash.

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

Related web links

World sports betting Law Report

ICC

Professional Players Federation
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Professional Footballers' Association

The FA

Betfair

Sport & Markt

BLP

Gambling Commission

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