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Sport wagering industry aims to safeguard itself

16 September 2010
bit.ly
By Bill Wilson

Business press reporter, BBC News

sports betting on sport is substantial organization.

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.

Which figure is likely to have actually grown even more, with an approximated ₤ 1bn bet on the World Cup alone in the UK this summer.

Meanwhile, German research study firm Sport & Markt approximates the total international gambling market will be worth 263bn euros (₤ 220bn) by 2012, with much of that driven by web and sports betting gaming.

But when the stability of events are hit the betting market suffers, and profits are put under risk if clients can not bet with self-confidence.

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

High-profile

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

"Not only is it a significant market in world organization, it is one that is now on the front pages of newspapers."

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 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 allegations, but was banned last week for 6 months for stopping working to report the unlawful method to him to toss frames.

There are likewise two other continuing investigations - not associated to Mr Higgins - into snooker.

'Honest'

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

"If the sport is viewed as sincere, straight and reasonable that benefits sports betting firms because people will spend money sports betting with confidence," he states.

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

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

As Simon Taylor of the Professional Players' Federation points out: "The only people who can fix 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 thinks that it is insufficient to merely have deterrents, sanctions and disciplinary treatments, however that the way to tackle potential concerns around gamers is also through education.

Mr Taylor says guidelines require to be discussed clearly to gamers with clear examples, and by individuals they respect.

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

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

'Brand damage'

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

"Prevention is better than cure, and we likewise make a point of telling gamers 'you are going to be captured'."

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

"If it loses that then people don't wish to wager, that is not in gaming companies' interests, and it is not in our interests."

He stated that when a good reputation was lost, the damage to a sport was "enormous".

FA rules imply gamers are not permitted to wager on a competition in which they are included.
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Mr Johnson states gamers need to be seen not to be capitalizing any inside understanding, which he says might trigger "brand name damage" to football and its competitions.

So, even a 2nd Division gamer knocked out of the FA Cup in the autumn can not bank on a Manchester United v Chelsea cup last the following spring.

"We need to overcome to gamers the reputational danger to the game," he says. "Once self-confidence has actually been damaged it is tough to get it back - mud sticks."

'Overwhelmingly legal'

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

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

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

"The overwhelming bulk 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 outcome of a sporting occasion.

"Such cheating has the potential to undermine the stability of a sport, and it also harms the business interests of sports betting bodies and sports betting wagering."

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

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

"We will notify sports betting of our issues, to assist avoid or curtail [illegal] 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 says there are still eight ongoing examinations, which much useful info has actually 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 consider stopping a criminal investigation "in favour of letting sports betting governing bodies take the lead".

Meanwhile, he says much of those wanting to cheat the sports betting industry were well-informed about sports betting and sporting individuals, and about wagering operations and the movement of cash.

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

Related internet links

World sports betting Law Report

ICC

Professional Players Federation

Professional Footballers' Association

The FA

Betfair

Sport & Markt

BLP

Gambling Commission

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