Sport wagering industry aims to safeguard itself

16 September 2010

By Bill Wilson

Business reporter, BBC News

sports betting on sport is big company.

Sport England estimates the worth of costs on sport-related gambling in England grew from ₤ 1.7 bn in 1985 to ₤ 2.8 bn in 2008.

Which figure is most likely to have actually grown even more, with an estimated ₤ 1bn bet on the World Cup alone in the UK this summertime.

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

But when the integrity of events are hit the gambling market suffers, and revenues are put under threat if clients can not bet with confidence.

And there can have been few higher-profile sport wagering stories than those affecting cricket and snooker this year.
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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 business, it is one that is now on the front pages of newspapers."

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

Three of these players have said they will also challenge the corruption charges installed versus the trio by the sport governing body the International Cricket Council.
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Meanwhile, three-times snooker world champ John Higgins was cleared of match-fixing claims, but was banned last week for six months for stopping working to report the unlawful technique to him to toss frames.

There are likewise two other continuing examinations - not related 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 sincere, straight and fair that benefits betting companies since people will spend money wagering with self-confidence," he states.

"If you take the Pakistan allegations, although unassociated to the UK regulated wagering market ... it is not truly a favorable story for wagering in the UK.

"That is because the perception is that 'cricket is now something we might have to beware about'."

'Education'
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So what can be done to avoid future scandals?

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 points out: "The only individuals who can repair a match are the competitors 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' .

He believes that it is inadequate to simply have deterrents, sanctions and disciplinary treatments, however that the method to tackle possible concerns around gamers is likewise through education.

Mr Taylor states guidelines need to be explained clearly to players with clear examples, and by individuals they appreciate.

"Through informing gamers about sports betting you strengthen stability which is in everybody's interest," he includes.

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

'Brand damage'

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

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

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

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

He said that when a great credibility was lost, the damage to a sport was "incalculable".

FA guidelines imply players are not enabled to bet on a competitors in which they are included.
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Mr Johnson says gamers need to be seen not to be capitalizing any inside understanding, which he states could cause "brand damage" to football and its competitions.

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

"We have to overcome to gamers the reputational danger to the video game," he states. "Once self-confidence has actually been harmed it is hard to get it back - mud sticks."

'Overwhelmingly legal'

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

The Gambling Commission was set up under the Gambling Act 2005 to regulate industrial sports betting in Great Britain.

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

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

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

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

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

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

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

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

'Vulnerabilities'

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

However, Mr Tofiluk states there are still eight continuous investigations, which much beneficial details has likewise been passed to sports betting authorities.

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

Meanwhile, he states a number of those wanting to cheat the sports betting industry were experienced about sports betting and sporting individuals, and about sports betting operations and the movement of money.

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

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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