Sport Betting Industry Looks To Protect Itself

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Sport wagering industry seeks to protect itself

16 September 2010

By Bill Wilson

Business press reporter, BBC News

sports betting on sport is big business.

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

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

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

But when the integrity of occasions are hit the sports betting industry suffers, and profits are put under danger if clients can not wager 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 talks about the sports betting gambling market now.

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

Four Pakistan cricketers have been questioned by police over spot-fixing allegations relating to a test versus 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 champion John Higgins was cleared of match-fixing claims, but was banned recently for six months for stopping working to report the illegal technique to him to toss frames.

There are likewise 2 other continuing investigations - not related to Mr Higgins - into snooker.

'Honest'

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

"If the sport is viewed as truthful, straight and reasonable that benefits wagering companies since people will spend money wagering with self-confidence," he states.

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

"That is due to the fact that the perception is that 'cricket is now something we may have to beware about'."

'Education'

So what can be done to avoid future scandals?

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

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

His organisation represents men and women in 15 sports betting in the UK, being an umbrella organisation for all player organisations, such as the Professional Footballers' Association.

He believes that it is insufficient to simply have deterrents, sanctions and disciplinary procedures, however that the method to deal with potential concerns around players is likewise through education.

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

"Through educating gamers about sports betting wagering you enhance integrity and that remains in everybody's interest," he adds.

"If gamers are harder to corrupt then sport will be harder to corrupt."

'Brand damage'

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

"Prevention is better than treatment, and we also make a point of telling gamers 'you are going to be caught'."

"It is vital 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 gambling companies' interests, and it is not in our interests."

He stated that when a good reputation was lost, the damage to a sport was "incalculable".

FA rules indicate gamers are not permitted to wager on a competitors in which they are involved.

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

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

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

'Overwhelmingly legal'

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

The Gambling Commission was established under the Gambling Act 2005 to control business gambling in Great Britain.

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

"The frustrating majority of sports betting wagering occurring through UK operators is legal and reasonable," he states.

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

"Such cheating has the possible to undermine the integrity of a sport, and it also hurts the commercial interests of sports betting bodies and sports betting."

The commission has actually developed an in-house Sports Betting Intelligence Unit to receive and disseminate info to sporting authorities, sports betting companies and policing authorities.

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

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

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

'Vulnerabilities'

But in a two-and-a-half year duration there has been just one criminal prosecution, a 24-year-old male who was cautioned for unfaithful in relation to greyhound racing.

However, Mr Tofiluk states there are still eight continuous examinations, and that much useful information has actually likewise been passed to sports betting authorities.

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

Meanwhile, he states a lot of those looking to cheat the sports betting industry were well-informed about sports betting and sporting people, and about sports betting operations and the movement of cash.

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