Sport betting industry seeks to secure itself

16 September 2010

By Bill Wilson

Business reporter, BBC News

sports betting on sport is substantial business.

Sport England estimates the worth of costs on sport-related gaming in England grew from ₤ 1.7 bn in 1985 to ₤ 2.8 bn in 2008.

And that figure is most likely to have grown further, with an approximated ₤ 1bn bet on the World Cup alone in the UK this summertime.

Meanwhile, German research study company Sport & Markt approximates the general worldwide sports betting 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 struck the gambling industry suffers, and profits are put under danger if consumers can not wager with confidence.

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

High-profile

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

"Not just is it a considerable market in world business, 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 associating with a test against England at Lord's last month.

Three of these players have actually 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 claims, however was banned last week for 6 months for failing to report the illegal method to him to toss frames.

There are likewise 2 other continuing examinations - not associated 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 perceived as sincere, straight and fair that benefits sports betting companies because individuals will spend money wagering with self-confidence," he says.

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

"That is because 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 professionals at a World sports betting Law Report conference into sports betting, the focus needs to be on sportspersons and sportswomen.

As Simon Taylor of the Professional Players' Federation mentions: "The only individuals who can repair a match are the competitors or the referee."

His organisation represents males and females 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 not adequate to merely have deterrents, sanctions and disciplinary procedures, but that the method to deal with potential concerns around gamers is likewise through education.

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

"Through informing players about sports betting wagering you reinforce stability and that is in everybody's interest," he includes.

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

'Brand damage'

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

"Prevention is much better than treatment, and we also make a point of telling players 'you are going to be caught'."

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

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

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

FA rules indicate gamers are not enabled to bank on a competitors in which they are involved.

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

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

"We have to get over to gamers the reputational danger to the game," he says. "Once self-confidence has been harmed it is hard to get it back - mud sticks."

'Overwhelmingly legal'

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

The Gambling Commission was set up under the Gambling Act 2005 to regulate commercial gaming in Great Britain.

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

"The frustrating majority of sports betting wagering occurring through UK operators is legal and reasonable," he states.

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

"Such cheating has the prospective to undermine the stability of a sport, and it likewise harms the commercial interests of sports betting bodies and sports betting."

The commission has developed an internal Sports Betting Intelligence Unit to get and distribute information to sporting authorities, sports betting companies and policing authorities.

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

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

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

'Vulnerabilities'

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

However, Mr Tofiluk says there are still 8 ongoing examinations, and that much helpful information 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 reliable, then the commission would consider discontinuing 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 market were educated about sports betting and sporting people, and about wagering operations and the motion of money.

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

Related web links

World sports betting Law Report

ICC

Professional Players Federation

Professional Footballers' Association

The FA

Betfair

Sport & Markt

BLP

Gambling Commission