Sport Betting Industry Wants To Protect Itself

Sport wagering industry wants to protect itself

16 September 2010

By Bill Wilson

Business reporter, BBC News

sports betting on sport is big organization.

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

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

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

But when the stability of occasions are hit the gaming industry suffers, and revenues are put under threat if customers can not bet with confidence.

And there can have been few higher-profile sport wagering stories than those impacting cricket and snooker this year.

High-profile

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

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

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

Three of these gamers have said they will also challenge the corruption charges mounted against the trio by the sport governing body the International Cricket Council.

Meanwhile, three-times snooker world champion John Higgins was cleared of match-fixing accusations, however was prohibited last week for 6 months for failing to report the prohibited approach to him to throw frames.

There are also 2 other continuing investigations - unrelated to Mr Higgins - into snooker.

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'Honest'

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

"If the sport is perceived as honest, straight and reasonable that is excellent for sports betting companies because people will invest money wagering with confidence," he says.

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

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

'Education'

So what can be done to prevent future scandals?

According to professionals 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 mentions: "The only people 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 believes that it is insufficient to merely have deterrents, sanctions and disciplinary procedures, however that the method to tackle potential issues around gamers is likewise through education.

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

"Through educating gamers about sports betting wagering you reinforce integrity and that remains in everyone'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 advice at the Football Association, agrees.

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

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

"If it loses that then individuals don't want to bet, that is not in gambling companies' interests, and it is not in our interests."

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

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

Mr Johnson says players need to be seen not to be capitalizing any inside understanding, which he says could trigger "brand damage" to football and its competitors.

So, even a 2nd Division player knocked out of the FA Cup in the fall can not bank on a Manchester United v Chelsea cup last the following spring.

"We have to get over to gamers the reputational risk to the video game," he says. "Once self-confidence has been harmed it is tough to get it back - mud sticks."

'Overwhelmingly legal'

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

The Gambling Commission was set up under the Gambling Act 2005 to control commercial gambling in Great Britain.

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

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

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

"Such unfaithful has the potential to undermine the integrity of a sport, and it also damages the commercial interests of sports betting bodies and sports betting."

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

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

"We will notify sports betting of our concerns, to assist avoid or curtail [prohibited] activity"

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

'Vulnerabilities'

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

However, Mr Tofiluk states there are still eight ongoing investigations, and that much helpful info has actually likewise 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 discontinuing a criminal investigation "in favour of letting sports betting governing bodies take the lead".

Meanwhile, he says a number of those seeking to cheat the sports betting market were well-informed about sports betting and sporting individuals, and about sports betting operations and the motion of cash.

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