Sport sports betting industry looks to safeguard itself

16 September 2010

By Bill Wilson

Business reporter, BBC News

sports betting on sport is huge organization.

Sport England approximates the worth of spending 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 grown further, with an estimated ₤ 1bn bet on the World Cup alone in the UK this summer.

Meanwhile, German research study firm Sport & Markt approximates the general international gambling market will deserve 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 gambling market suffers, and profits are put under hazard if clients can not wager with confidence.

And there can have been couple of 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 only is it a considerable market in world company, it is one that is now on the front pages of papers."

Four Pakistan cricketers have been questioned by cops over spot-fixing accusations relating to a test versus England at Lord's last month.

Three of these gamers have stated they will also challenge the corruption charges installed against the trio by the sport governing body the International Cricket Council.

Meanwhile, three-times snooker world champ John Higgins was cleared of match-fixing allegations, however was prohibited last week for six months for failing to report the illegal approach to him to toss frames.

There are likewise two other continuing examinations - 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 perceived as honest, straight and reasonable that benefits wagering companies due to the fact that people will invest cash wagering with confidence," he states.

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

"That is since the understanding is that 'cricket is now something we may need to be cautious about'."

'Education'

So what can be done to prevent future scandals?

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

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

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

He thinks that it is not adequate to merely have deterrents, sanctions and disciplinary procedures, but that the method to take on prospective problems around gamers is also through education.

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

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

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

'Brand damage'

Matt Johnson, head of regulatory legal guidance at the Football Association, agrees.

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

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

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

He said that as soon as a good track record was lost, the damage to a sport was "incalculable".

FA guidelines indicate gamers are not permitted to wager on a competition 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 could cause "brand name damage" to football and its competitors.

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 have to overcome to gamers the reputational threat to the game," he states. "Once self-confidence has actually been damaged it is tough to get it back - mud sticks."

'Overwhelmingly legal'

If this represents the "carrot" approach, 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 regulate business gambling in Great Britain.

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

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

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

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

The commission has developed an internal Sports Betting Intelligence Unit to get and disseminate info to sporting authorities, wagering firms and policing authorities.

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

"We will alert sports betting of our issues, to assist prevent or curtail [prohibited] activity"

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

'Vulnerabilities'

But in a two-and-a-half year period there has 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 ongoing investigations, which much useful info has likewise been passed to sports betting authorities.

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

Meanwhile, he states a number of those seeking to cheat the sports betting market were well-informed about sports betting and sporting individuals, and about sports betting 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

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