Sport wagering industry looks to protect itself

16 September 2010

By Bill Wilson
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Business press reporter, BBC News

sports betting on sport is substantial company.

Sport England approximates the value of costs on sport-related sports betting 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 estimated ₤ 1bn bet on the World Cup alone in the UK this summer.

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

But when the stability of events are struck the sports betting market suffers, and earnings are put under hazard if consumers can not wager with self-confidence.

And there can have been few higher-profile sport 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 business, it is one that is now on the front pages of papers."

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 gamers have stated they will also challenge the corruption charges mounted 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 allegations, however was banned last week for 6 months for stopping working to report the prohibited method to him to throw frames.

There are also two 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 honest, straight and reasonable that is good for due to the fact that people will spend money wagering with self-confidence," he states.

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

"That is due to the fact that the understanding is that 'cricket is now something we may have to be careful about'."
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'Education'

So what can be done to prevent future scandals?

According to experts at a World sports betting Law Report conference into sports betting, the focus needs to be on sportsmen and sportswomen.

As Simon Taylor of the Professional Players' Federation points out: "The only individuals who can fix 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 gamer organisations, such as the Professional Footballers' Association.

He thinks that it is insufficient to merely have deterrents, sanctions and disciplinary procedures, but that the way to deal with possible issues around players is also through education.

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

"Through informing gamers about sports betting you enhance integrity 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 much better than cure, and we likewise make a point of telling gamers 'you are going to be captured'."

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

"If it loses that then people do not wish to bet, that is not in gambling companies' interests, and it is not in our interests."

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

FA rules imply gamers are not allowed to wager on a competitors in which they are included.

Mr Johnson says gamers need to be seen not to be capitalizing any inside understanding, which he says might cause "brand damage" to football and its competitions.

So, even a Second Division player knocked out of the FA Cup in the fall can not bank on a Manchester United v Chelsea cup final the following spring.
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"We need to overcome to gamers the reputational risk to the video game," he states. "Once self-confidence has actually been damaged it is difficult 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 regulate industrial gaming in Great Britain.

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

"The frustrating bulk of sports betting wagering taking place through UK operators is legal and fair," he states.
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"But for some there is the temptation to ... corruptly interfere with the result of a sporting event.

"Such unfaithful has the prospective to weaken the integrity of a sport, and it likewise hurts the business interests of sports betting bodies and sports betting wagering."

The commission has developed an in-house Sports Betting Intelligence Unit to receive and share info to sporting authorities, sports betting firms and policing authorities.
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"Since 2007 we have actually experienced a substantial insight into world of corrupt sports betting," he says.

"We will alert sports betting of our issues, to help avoid or reduce [prohibited] activity"

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

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

However, Mr Tofiluk says there are still 8 continuous examinations, and that much helpful info has also been passed to sports betting authorities.

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

Meanwhile, he states many of those wanting to cheat the sports betting market were well-informed about sports betting and sporting individuals, and about wagering operations and the movement of money.

"They look for 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

The FA
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Betfair

Sport & Markt

BLP

Gambling Commission