Sport Betting Industry Looks To Protect Itself

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Sport sports betting market looks to secure itself

16 September 2010

By Bill Wilson

Business press reporter, BBC News

sports betting on sport is big organization.

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

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

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

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

And there can have been couple of higher-profile sport betting stories than those impacting cricket and snooker this year.

High-profile

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

"Not only 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 cops over spot-fixing accusations associating with a test versus England at Lord's last month.

Three of these players have actually stated they will also challenge the corruption charges installed against 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 prohibited last week for six months for failing to report the prohibited technique to him to throw frames.

There are likewise two other continuing investigations - unrelated 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 perceived as sincere, straight and reasonable that benefits sports betting firms since people will spend money wagering with self-confidence," he says.

"If you take the Pakistan allegations, although unassociated to the UK regulated wagering market ... it is not really a favorable story for wagering in the UK.

"That is due to the fact that the understanding is that 'cricket is now something we might need to be cautious about'."

'Education'

So what can be done to avoid 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 people who can repair 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 not adequate to merely have deterrents, sanctions and disciplinary procedures, however that the way to tackle prospective concerns around players is also through education.

Mr Taylor states rules need to be discussed clearly to gamers with clear examples, and by people they respect.

"Through informing players about sports betting wagering you strengthen stability which remains in everybody's interest," he adds.

"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, concurs.

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

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

"If it loses that then individuals do not want to wager, that is not in sports betting firms' interests, and it is not in our interests."

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

FA rules mean gamers are not enabled to bank on a competition in which they are involved.

Mr Johnson says players need to be seen not to be cashing in on any inside knowledge, which he states might cause "brand name 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 final the following spring.

"We need to overcome to players the reputational danger to the game," he states. "Once self-confidence has been damaged it is hard to get it back - mud sticks."

'Overwhelmingly legal'

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

The Gambling Commission was established under the Gambling Act 2005 to regulate commercial 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 overwhelming majority of sports betting wagering taking location through UK operators is legal and fair," he says.

"But for some there is the temptation to ... corruptly hinder the result of a sporting event.

"Such unfaithful has the prospective to undermine the integrity of a sport, and it also hurts the industrial interests of sports betting bodies and sports betting."

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

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

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

In May 2010, the commission also 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 helpful information has actually also been passed to sports betting authorities.

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

Meanwhile, he says numerous of those wanting to cheat the sports betting wagering industry were experienced about sports betting and sporting individuals, and about betting operations and the movement of money.

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