Sport Betting Industry Wants To Protect Itself

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Sport wagering market aims to secure itself

16 September 2010

By Bill Wilson

Business reporter, BBC News

sports betting on sport is big company.

Sport England approximates 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 season.

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

But when the integrity of events are struck the gambling market suffers, and earnings are put under risk if consumers can not bet with 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 talks about the sports betting gambling market now.

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

Four Pakistan cricketers have been questioned by authorities over spot-fixing accusations 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 mounted 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 claims, but was prohibited recently for 6 months for stopping working to report the unlawful approach to him to throw frames.

There are also two other continuing investigations - unrelated to Mr Higgins - into snooker.

'Honest'

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

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

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

"That is due to the fact that the perception is that 'cricket is now something we may have to be cautious 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, the focus has to be on sportspersons and sportswomen.

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

His organisation represents men and women 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 way to tackle prospective concerns around gamers is also through education.

Mr Taylor says rules require to be explained clearly to players with clear examples, and by people they respect.

"Through informing gamers about sports betting you reinforce integrity and that remains in everyone's interest," he includes.

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

'Brand damage'

Matt Johnson, head of regulative legal recommendations at the Football Association, concurs.

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

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

"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 once a great reputation was lost, the damage to a sport was "enormous".

FA rules mean players are not permitted to bank on a competition in which they are included.

Mr Johnson states players need to be seen not to be cashing in on any inside understanding, which he says could trigger "brand name damage" to football and its competitions.

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 last the following spring.

"We need to overcome to players the reputational threat to the game," he says. "Once confidence has actually been harmed it is difficult to get it back - mud sticks."

'Overwhelmingly legal'

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

The Gambling Commission was established under the Gambling Act 2005 to regulate commercial gaming 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 sports betting, which is the remit of the FSA.

"The overwhelming majority of sports betting taking place 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 event.

"Such unfaithful has the potential to undermine the integrity of a sport, and it likewise damages the industrial interests of sports betting bodies and sports betting wagering."

The commission has actually 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 considerable insight into world of corrupt sports betting wagering," he states.

"We will signal sports betting of our concerns, to assist avoid or curtail [prohibited] activity"

In May 2010, the commission likewise introduced a personal 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 man who was warned for unfaithful in relation to greyhound racing.

However, Mr Tofiluk says there are still eight ongoing examinations, which much beneficial information has likewise been passed to sports betting authorities.

He said that where an examination by a sport governing body was quicker, and more cost efficient, 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 looking to cheat the sports betting industry were experienced about sports betting and sporting individuals, and about sports betting operations and the motion of money.

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