Sport wagering industry aims to protect itself

16 September 2010

By Bill Wilson

Business press reporter, BBC News

sports betting on sport is huge service.

Sport England approximates the value of spending on sport-related betting 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 season.

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

But when the stability of occasions are hit the gaming industry suffers, and revenues are put under threat if customers can not wager with self-confidence.

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

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

Three of these players have actually said they will likewise challenge the corruption charges mounted 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, but was banned recently for six months for stopping working to report the unlawful approach to him to toss frames.

There are also two other continuing investigations - not related to Mr Higgins - into snooker.

'Honest'

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

"If the sport is viewed as sincere, straight and reasonable that benefits wagering firms since people will invest cash sports betting with confidence," he states.

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

"That is because the understanding is that 'cricket is now something we might 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 needs to be on sportspersons 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 believes that it is not adequate to simply have deterrents, sanctions and disciplinary procedures, but that the method to tackle possible concerns around gamers is also through education.

Mr Taylor states rules need to be discussed clearly to players with clear examples, and by people they appreciate.

"Through informing players about sports betting wagering you strengthen stability which is in everyone's interest," he adds.

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

'Brand damage'

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

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

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

"If it loses that then people don't desire to wager, that is not in sports betting firms' interests, and it is not in our interests."

He stated that once a great track record was lost, the damage to a sport was "enormous".

FA guidelines imply players are not enabled to bank on a competition in which they are involved.

Mr Johnson says gamers have to be seen not to be capitalizing any inside knowledge, which he says could cause "brand name damage" to football and its competitions.

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

"We have 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 policy at the Gambling Commission, represents the "stick".

The Gambling Commission was established under the Gambling Act 2005 to control business betting in Great Britain.

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

"The overwhelming majority of sports betting wagering happening through UK operators is legal and fair," he states.

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

"Such cheating 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 established an internal Sports Betting Intelligence Unit to receive and distribute info 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 signal sports betting of our issues, to assist prevent or reduce [illegal] activity"

In May 2010, the commission likewise introduced a confidential 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 unfaithful in relation to greyhound racing.

However, Mr Tofiluk states there are still 8 ongoing investigations, and that much helpful details has also been passed to sports betting authorities.

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

Meanwhile, he states a lot of those looking to cheat the sports betting market were experienced about sports betting and sporting individuals, and about wagering operations and the motion of money.

"They look for the vulnerabilities of these to help in their enterprises."

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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