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Sport sports betting market looks to protect itself
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16 September 2010

By Bill Wilson

Business press reporter, BBC News

sports betting on sport is huge company.

Sport England approximates the value of spending 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 grown even more, with an estimated ₤ 1bn bet on the World Cup alone in the UK this summertime.

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

But when the stability of events are struck the sports betting industry suffers, and earnings are put under risk if clients can not bet with self-confidence.

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

High-profile

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

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

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

Three of these players have stated they will also challenge the corruption charges installed versus 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 illegal approach to him to throw frames.

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

'Honest'

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

"If the sport is viewed as truthful, straight and reasonable that benefits sports betting firms because people will invest money sports betting with self-confidence," he states.

"If you take the Pakistan accusations, although unassociated to the UK managed sports betting industry ... it is not actually a positive story for wagering in the UK.

"That is due to the fact that the perception is that 'cricket is now something we may need 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 needs to be on sportspersons and sportswomen.

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

His organisation represents males and women 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 inadequate to merely have deterrents, sanctions and disciplinary procedures, but that the way to tackle potential issues around gamers is likewise through education.

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

"Through informing players about sports betting wagering you enhance stability which remains in everybody'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 guidance at the Football Association, concurs.

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

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

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

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

FA rules indicate gamers are not allowed to wager 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 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 last the following spring.

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

'Overwhelmingly legal'

If this represents the "carrot" method, then maybe 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 industrial gambling in Great Britain.

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

"The overwhelming bulk of sports betting occurring through UK operators is legal and fair," he states.

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

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

The commission has actually developed an internal Sports Betting Intelligence Unit to get and disseminate details to sporting authorities, sports betting firms and policing authorities.

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

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

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

'Vulnerabilities'

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

However, Mr Tofiluk states there are still 8 continuous investigations, and that much useful info 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 consider ceasing a criminal investigation "in favour of letting sports betting governing bodies take the lead".

Meanwhile, he says a lot of those aiming to cheat the sports betting market were well-informed about sports betting and sporting people, and about wagering operations and the motion of money.

"They look for out the of these to assist in their enterprises."

Related web links

World sports betting Law Report

ICC

Professional Players Federation

Professional Footballers' Association

The FA

Betfair

Sport & Markt

BLP
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