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Sport sports betting market wants to safeguard itself

16 September 2010

By Bill Wilson

Business press reporter, BBC News

Betting on sport is big company.

Sport England approximates the worth of spending 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 summer season.

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

But when the stability of occasions are struck the sports betting industry suffers, and profits are put under danger if customers can not bet with confidence.

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

High-profile

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

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

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

Three of these gamers have actually said they will also 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 allegations, however was banned last week for six months for failing to report the unlawful technique to him to toss frames.

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

'Honest'

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

"If the sport is perceived as honest, straight and fair that is excellent for wagering companies since people will spend cash betting with confidence," he states.

"If you take the Pakistan claims, although unassociated to the UK controlled sports betting industry ... it is not truly a favorable story for wagering in the UK.

"That is because the perception is that 'cricket is now something we may need to be mindful about'."

'Education'

So what can be done to prevent future scandals?
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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 explains: "The only individuals who can repair a match are the rivals or the referee."

His organisation represents men and ladies 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 enough to simply have deterrents, sanctions and disciplinary treatments, but that the method to deal with potential issues around players is likewise through education.

Mr Taylor says rules need to be discussed clearly to gamers with clear examples, and by individuals they appreciate.

"Through educating gamers about sports betting wagering you strengthen stability and that remains in everybody's interest," he adds.
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"If players are harder to corrupt then sport will be more difficult to corrupt."

'Brand damage'

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

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

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

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

He said that once a good credibility was lost, the damage to a sport was "incalculable".

FA guidelines suggest gamers are not permitted to bank on a competition in which they are involved.

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

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

"We need to get over to players the reputational risk to the video game," he states. "Once confidence has actually been damaged it is hard to get it back - mud sticks."

'Overwhelmingly legal'

If this represents the "carrot" method, 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 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 wagering, which is the remit of the FSA.

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

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

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

The commission has established an in-house Sports Betting Intelligence Unit to receive and share details to sporting authorities, sports betting firms and policing authorities.

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

"We will notify sports betting of our issues, to help avoid or cut [unlawful] activity"

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

'Vulnerabilities'

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

However, Mr Tofiluk says there are still eight ongoing investigations, which much helpful information 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 reliable, then the commission would consider ceasing 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 market were educated about sports betting and sporting people, and about betting operations and the motion of money.

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

Related internet links

World sports betting Law Report

ICC

Professional Players Federation

Professional Footballers' Association
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The FA

Betfair

Sport & Markt

BLP

Gambling Commission
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