Sport Betting Industry Looks To Protect Itself

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Sport betting market aims to protect itself

16 September 2010

By Bill Wilson

Business reporter, BBC News

sports betting on sport is huge business.

Sport England estimates the value of costs 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 actually grown even more, with an estimated ₤ 1bn bet on the World Cup alone in the UK this summer season.

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

But when the integrity of occasions are hit the gambling market suffers, and earnings are put under threat if consumers can not wager with confidence.

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

High-profile

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

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

Four Pakistan cricketers have been questioned by police over spot-fixing claims connecting to a test against England at Lord's last month.

Three of these gamers have actually said 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 champ John Higgins was cleared of match-fixing accusations, however was banned last week for 6 months for failing to report the prohibited method to him to throw frames.

There are likewise 2 other continuing investigations - unrelated to Mr Higgins - into snooker.

'Honest'

David O'Reilly is legal counsel for Betfair, one of the UK's most significant online sporting exchanges.

"If the sport is viewed as truthful, straight and reasonable that is good for wagering companies because individuals will spend cash wagering with confidence," he says.

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

"That is since the understanding is that 'cricket is now something we might need to take care about'."

'Education'

So what can be done to prevent future scandals?

According to specialists 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 mentions: "The only people who can fix a match are the competitors or the referee."

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

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

"Through educating gamers about sports betting you enhance stability and that remains in everybody's interest," he includes.

"If players 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.

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

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

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

He stated that once a great track record was lost, the damage to a sport was "incalculable".

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

Mr Johnson says gamers have actually to be seen not to be capitalizing 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 fall can not bank on a Manchester United v Chelsea cup final the following spring.

"We need to get over to players the reputational risk to the game," he states. "Once confidence has actually 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 established under the Gambling Act 2005 to regulate business betting in Great Britain.

An ex-chief constable of West Midlands authorities, Mr Tofiluk has obligation for policing all sports betting 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 says.

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

"Such cheating has the prospective to undermine the integrity of a sport, and it also hurts the industrial interests of sports betting bodies and sports betting."

The commission has established an in-house Sports Betting Intelligence Unit to receive and distribute information to sporting authorities, sports betting companies 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 help prevent or reduce [unlawful] activity"

In May 2010, the commission likewise presented 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 states there are still eight ongoing investigations, which much beneficial details has also been passed to sports betting authorities.

He stated that where an investigation 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 many of those aiming to cheat the sports betting wagering industry were knowledgeable about sports betting and sporting people, and about betting operations and the movement of money.

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