Sport Betting Industry Wants To Protect Itself

Sport sports betting market wants to safeguard itself

16 September 2010

By Bill Wilson

Business reporter, BBC News

sports betting on sport is huge company.

Sport England estimates the worth of costs on sport-related gaming 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 firm Sport & Markt estimates the total global sports betting market will deserve 263bn euros (₤ 220bn) by 2012, with much of that driven by internet and sports betting.

But when the stability of events are hit the gaming market suffers, and earnings are put under danger if consumers can not bet with confidence.

And there can have been few higher-profile sport sports betting stories than those affecting cricket and snooker this year.

High-profile

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

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

Four Pakistan cricketers have been questioned by cops over spot-fixing allegations associating with a test against England at Lord's last month.

Three of these players have actually said they will also challenge the corruption charges installed 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 prohibited recently for six months for stopping working to report the prohibited approach to him to toss frames.

There are likewise two other continuing examinations - not associated 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 fair that benefits wagering firms due to the fact that individuals will spend money sports betting with confidence," he states.

"If you take the Pakistan allegations, although unrelated to the UK regulated sports betting industry ... it is not actually a favorable story for wagering in the UK.

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

'Education'

So what can be done to prevent future scandals?

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

As Simon Taylor of the Professional Players' Federation explains: "The only individuals who can repair 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 player organisations, such as the Professional Footballers' Association.

He thinks that it is inadequate to merely have deterrents, sanctions and disciplinary procedures, however that the method to take on possible concerns around players is also through education.

Mr Taylor states rules require to be described clearly to players with clear examples, and by people they respect.

"Through educating players about sports betting you reinforce stability which remains in everyone'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 advice at the Football Association, concurs.

"Prevention is much better than remedy, and we also make a point of telling players 'you are going to be captured'."

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

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

He stated that as soon as a good reputation was lost, the damage to a sport was "enormous".

FA guidelines mean players are not permitted to bank on a competition in which they are included.

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

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

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

'Overwhelmingly legal'

If this represents the "carrot" approach, 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 commercial gaming in Great Britain.

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

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

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

"Such cheating has the potential to weaken the integrity of a sport, and it also hurts the business interests of sports bodies and sports betting wagering."

The commission has developed an internal Sports Betting Intelligence Unit to receive and distribute details to sporting authorities, wagering firms and policing authorities.

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

"We will inform sports betting of our concerns, to assist prevent or curtail [prohibited] 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 guy who was cautioned for cheating in relation to greyhound racing.

However, Mr Tofiluk states there are still 8 ongoing examinations, which much useful information has actually likewise been passed to sports betting authorities.

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

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

"They seek out the vulnerabilities of these to help in their business."