Sport wagering market wants to protect itself

16 September 2010

By Bill Wilson

Business reporter, BBC News

Betting on sport is substantial organization.

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

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

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

But when the integrity of events are struck the gambling industry suffers, and earnings are put under threat if customers can not bet with self-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 speak about the sports betting gambling market now.

"Not just is it a considerable market in world service, it is one that is now on the front pages of papers."

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

Three of these players have said 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 claims, however was banned recently for 6 months for failing to report the prohibited technique to him to toss frames.

There are also two other continuing examinations - not associated to Mr Higgins - into snooker.

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

"If the sport is perceived as honest, straight and reasonable that benefits wagering firms because people will invest cash wagering with confidence," he states.

"If you take the Pakistan claims, although unrelated to the UK regulated sports betting industry ... it is not really a favorable story for sports betting in the UK.
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"That is since the understanding 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 has to be on sportspersons and sportswomen.

As Simon Taylor of the Professional Players' Federation points out: "The only individuals who can fix a match are the rivals 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 believes that it is insufficient to merely have deterrents, sanctions and disciplinary procedures, however that the way to deal with possible problems around gamers is likewise through education.

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

"Through educating players about sports betting wagering you reinforce integrity which is in everyone's interest," he includes.

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

'Brand damage'

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

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

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

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

He stated that when a great credibility was lost, the damage to a sport was "enormous".

FA rules mean players are not enabled to bank on a competition in which they are included.

Mr Johnson states gamers have actually to be seen not to be cashing in on any inside understanding, which he states could 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 have to get over to gamers the reputational risk to the game," he states. "Once self-confidence has actually been harmed it is difficult 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 manage business gambling in Great Britain.

An ex-chief constable of West Midlands cops, Mr Tofiluk has obligation for policing all wagering in the UK apart from spread sports betting, which is the remit of the FSA.
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"The overwhelming majority of sports betting happening through UK operators is legal and fair," he says.

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

"Such cheating has the potential to undermine the stability of a sport, and it likewise hurts the commercial interests of sports betting bodies and sports betting."
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The commission has developed an in-house Sports Betting Intelligence Unit to get and share information to sporting authorities, wagering companies and policing authorities.

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

"We will inform sports betting of our concerns, to help prevent or reduce [unlawful] activity"

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

'Vulnerabilities'

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

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

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

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

"They look for the vulnerabilities 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

Gambling Commission

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