Sport Betting Industry Seeks To Protect Itself

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Sport wagering industry wants to protect itself

16 September 2010

By Bill Wilson

Business press reporter, BBC News

Betting on sport is big service.

Sport England estimates 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 approximated ₤ 1bn bet on the World Cup alone in the UK this summer season.

Meanwhile, German research study 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 gaming.

But when the integrity of occasions are hit the sports betting market suffers, and earnings are put under danger if clients can not bet with confidence.

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

High-profile

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

"Not only 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 authorities over spot-fixing allegations associating with a test against England at Lord's last month.

Three of these gamers have actually said they will likewise 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 claims, but was prohibited recently for 6 months for failing to report the prohibited method to him to toss frames.

There are also 2 other continuing examinations - not associated to Mr Higgins - into snooker.

'Honest'

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

"If the sport is viewed as truthful, straight and fair that is great for sports betting companies due to the fact that people will invest money wagering with confidence," he states.

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

"That is since the understanding is that 'cricket is now something we might have to beware about'."

'Education'

So what can be done to prevent future scandals?

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

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

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

He believes that it is not adequate to merely have deterrents, sanctions and disciplinary procedures, however that the method to tackle potential issues around gamers is likewise through education.

Mr Taylor states rules need to be discussed clearly to gamers with clear examples, and by people they appreciate.

"Through informing players about sports betting you strengthen stability which 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, concurs.

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

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

"If it loses that then individuals do not want to wager, that is not in gambling companies' interests, and it is not in our interests."

He said that when an excellent credibility was lost, the damage to a sport was "incalculable".

FA guidelines imply players are not allowed to bank on a competition in which they are included.

Mr Johnson states gamers need to be seen not to be capitalizing any inside understanding, which he says might trigger "brand damage" to football and its competitors.

So, even a 2nd Division player knocked out of the FA Cup in the fall can not bet on a Manchester United v Chelsea cup final the following spring.

"We need to overcome to players the reputational danger to the game," he states. "Once confidence has been harmed it is tough 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 set up under the Gambling Act 2005 to control commercial sports betting in Great Britain.

An ex-chief constable of West Midlands cops, 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 overwhelming majority of sports betting wagering occurring through UK operators is legal and reasonable," he says.

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

"Such cheating has the prospective to weaken the integrity of a sport, and it likewise hurts the business interests of sports betting bodies and sports betting."

The commission has established an internal Sports Betting Intelligence Unit to receive and distribute details to sporting authorities, wagering companies and policing authorities.

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

"We will signal sports betting of our issues, to assist prevent or reduce [unlawful] activity"

In May 2010, the commission also presented a private telephone hotline for those with info or suspicions.

'Vulnerabilities'

But in a two-and-a-half year duration there has been simply one prosecution, a 24-year-old guy who was warned for cheating in relation to greyhound racing.

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

He stated that where an investigation by a sport governing body was quicker, and more cost effective, then the commission would consider terminating a criminal investigation "in favour of letting sports betting governing bodies take the lead".

Meanwhile, he states a number of those aiming to cheat the sports betting wagering market were well-informed about sports betting and sporting individuals, and about sports betting operations and the movement of money.

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