Sport betting industry wants to protect itself

16 September 2010

By Bill Wilson

Business press reporter, BBC News

Betting on sport is big service.

Sport England approximates the value of costs on sport-related gaming in 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 summertime.

Meanwhile, German research study firm Sport & Markt estimates the overall international gambling market will deserve 263bn euros (₤ 220bn) by 2012, with much of that driven by internet and sports betting.

But when the stability of events are hit the gambling market suffers, and profits are put under threat if consumers can not wager with confidence.

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

High-profile

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

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

Four Pakistan cricketers have been questioned by police over spot-fixing allegations associating with a test versus England at Lord's last month.

Three of these gamers have actually said they will likewise 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 accusations, however was prohibited last week for 6 months for failing to report the illegal technique to him to throw frames.

There are also 2 other continuing investigations - unrelated 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 perceived as truthful, straight and fair that is good for sports betting firms since people will spend cash wagering with self-confidence," he says.

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

"That is since the perception is that 'cricket is now something we may have to take care 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 sportspersons and sportswomen.

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

His organisation represents males and ladies in 15 sports betting in the UK, being an umbrella organisation for all player organisations, such as the Professional Footballers' Association.
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He thinks that it is insufficient to simply have deterrents, sanctions and disciplinary treatments, however that the way to take on prospective problems around gamers is also through education.

Mr Taylor states rules require to be described plainly to gamers with clear examples, and by people they appreciate.

"Through educating gamers about sports betting you strengthen stability and that is in everybody's interest," he adds.

"If players 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 better than treatment, and we also make a point of informing gamers 'you are going to be caught'."

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

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

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

FA rules suggest players are not enabled to bet on a competitors in which they are involved.
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Mr Johnson states gamers have actually to be seen not to be cashing in on any inside understanding, which he says might cause "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 wager on a Manchester United v Chelsea cup last the following spring.

"We need to overcome to players the reputational danger to the video game," he states. "Once self-confidence has been damaged it is difficult to get it back - mud sticks."

'Overwhelmingly legal'

If this represents the "carrot" technique, 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 commercial gambling in Great Britain.

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

"The frustrating bulk of sports betting happening 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 occasion.

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

The commission has established an internal Sports Betting Intelligence Unit to get and disseminate information to sporting authorities, wagering companies and policing authorities.

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

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

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

'Vulnerabilities'

But in a two-and-a-half year period there has been simply one criminal prosecution, a 24-year-old man who was warned for unfaithful in relation to greyhound racing.

However, Mr Tofiluk says there are still eight continuous investigations, and that much helpful info has actually likewise been passed to sports betting authorities.

He said that where an investigation by a sport governing body was quicker, and more expense efficient, then the commission would think about discontinuing a criminal examination "in favour of letting sports betting governing bodies take the lead".
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Meanwhile, he states a number of those aiming to cheat the sports betting wagering market were well-informed about sports betting and sporting individuals, and about wagering operations and the movement of money.

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

Related web links

World sports betting Law Report

ICC
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Professional Players Federation

Professional Footballers' Association

The FA

Betfair

Sport & Markt

BLP

Gambling Commission