Sport Betting Industry Looks To Protect Itself

Sport sports betting market seeks to protect itself

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16 September 2010

By Bill Wilson

Business press reporter, BBC News

sports betting on sport is big business.

Sport England estimates the value of costs on sport-related sports betting 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 summer.

Meanwhile, German research study company Sport & Markt estimates the total international 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 betting industry suffers, and earnings are put under risk if clients can not bet with self-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 considerable market in world organization, it is one that is now on the front pages of newspapers."

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

Three of these gamers have said they will also challenge the corruption charges installed 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 allegations, but was banned last week for 6 months for failing to report the prohibited technique to him to throw 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 most significant online sporting exchanges.

"If the sport is perceived as truthful, straight and reasonable that is great for wagering firms because people will spend cash wagering with self-confidence," he states.

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

"That is due to the fact that 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 gambling, the focus has to be on sportspersons and sportswomen.

As Simon Taylor of the Professional Players' Federation mentions: "The only individuals who can fix 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 gamer organisations, such as the Professional Footballers' Association.

He believes that it is insufficient to simply have deterrents, sanctions and disciplinary procedures, but that the way to tackle possible issues around gamers is also through education.

Mr Taylor says rules require to be explained plainly to gamers with clear examples, and by people they appreciate.

"Through informing players about sports betting wagering you enhance integrity which remains in everyone's interest," he adds.

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

'Brand damage'

Matt Johnson, head of regulatory legal advice at the Football Association, concurs.

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

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

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

He said that once an excellent reputation was lost, the damage to a sport was "enormous".

FA rules suggest players are not allowed to bank on a competitors in which they are included.

Mr Johnson says gamers have actually to be seen not to be cashing in on any inside understanding, which he states might cause "brand name damage" to football and its competitions.

So, even a Second Division gamer knocked 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 get over to gamers the reputational risk to the game," he states. "Once confidence has actually been damaged it is hard to get it back - mud sticks."

'Overwhelmingly legal'

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

The Gambling Commission was established under the Gambling Act 2005 to control industrial gaming in Great Britain.

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

"The frustrating bulk of sports betting occurring through UK operators is legal and fair," he says.

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

"Such unfaithful has the possible to weaken the stability of a sport, and it also harms the industrial interests of sports betting bodies and sports betting."

The commission has actually established an internal 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 significant insight into world of corrupt sports betting," he states.

"We will inform sports betting of our concerns, to help prevent or cut [unlawful] activity"

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

'Vulnerabilities'

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

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

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

Meanwhile, he says a lot of those wanting to cheat the sports betting wagering industry were experienced about sports betting and sporting people, and about wagering operations and the movement of money.