Sport sports betting industry looks to secure itself
16 September 2010
By Bill Wilson
Business press reporter, BBC News
sports betting on sport is huge company.
Sport England approximates the worth of costs on sport-related gambling in England grew from ₤ 1.7 bn in 1985 to ₤ 2.8 bn in 2008.
Which figure is likely to have actually grown further, with an approximated ₤ 1bn bet on the World Cup alone in the UK this summertime.
Meanwhile, German research company Sport & Markt estimates the general worldwide gambling market will deserve 263bn euros (₤ 220bn) by 2012, with much of that driven by web and sports betting gambling.
But when the stability of events are hit the gambling industry suffers, and earnings are put under danger if consumers 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 discuss the sports betting market now.
"Not only is it a substantial market in world business, it is one that is now on the front pages of papers."
Four Pakistan cricketers have actually been questioned by police over spot-fixing allegations associating with a test against England at Lord's last month.
Three of these gamers have actually 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 champ John Higgins was cleared of match-fixing accusations, however was prohibited last week for 6 months for stopping working to report the prohibited approach to him to throw frames.
There are also 2 other continuing examinations - unrelated to Mr Higgins - into snooker.
'Honest'
David O'Reilly is legal counsel for Betfair, among the UK's most significant online sporting exchanges.
"If the sport is perceived as sincere, straight and reasonable that benefits betting companies because people will invest money wagering with self-confidence," he states.
"If you take the Pakistan allegations, although unrelated to the UK managed sports betting market ... it is not truly a favorable story for betting in the UK.
"That is since the perception is that 'cricket is now something we might have to beware about'."
'Education'
So what can be done to avoid future scandals?
According to professionals at a World sports betting Law Report conference into sports betting gambling, the focus needs to be on sportspersons and sportswomen.
As Simon Taylor of the Professional Players' Federation points out: "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 believes that it is inadequate to merely have deterrents, sanctions and disciplinary procedures, however that the method to tackle possible issues around gamers is also through education.
Mr Taylor states rules require to be discussed plainly to players with clear examples, and by people they respect.
"Through informing gamers about sports betting wagering you reinforce integrity which is in everybody's interest," he includes.
"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 cure, and we also make a point of telling gamers 'you are going to be caught'."
"It is necessary that sport is straight, and is seen to be directly," he adds.
"If it loses that then people don't want to bet, that is not in gaming companies' interests, and it is not in our interests."
He stated that as soon as an excellent track record was lost, the damage to a sport was "incalculable".
FA guidelines imply players are not permitted to bank on a competitors in which they are involved.
Mr Johnson states players need to be seen not to be capitalizing any inside knowledge, which he states might cause "brand damage" to football and its competitions.
So, even a 2nd Division player knocked out of the FA Cup in the autumn can not wager on a Manchester United v Chelsea cup last the following spring.
"We need to get over to players the reputational danger to the game," he says. "Once confidence has been harmed it is difficult to get it back - mud sticks."
'Overwhelmingly legal'
If this represents the "carrot" approach, then possibly Nick Tofiluk, director of regulation at the Gambling Commission, represents the "stick".
The Gambling Commission was set up under the Gambling Act 2005 to manage industrial gaming in Great Britain.
An ex-chief constable of West Midlands police, Mr Tofiluk has responsibility for policing all sports betting in the UK apart from spread wagering, which is the remit of the FSA.
"The overwhelming bulk of sports betting wagering taking location through UK operators is legal and reasonable," he states.
"But for some there is the temptation to ... corruptly interfere with the result of a sporting occasion.
"Such unfaithful has the prospective to weaken the stability 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 receive and disseminate 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 wagering," he says.
"We will signal sports betting of our issues, to help avoid or cut [prohibited] activity"
In May 2010, the commission also introduced a confidential telephone hotline for those with information or suspicions.
'Vulnerabilities'
But in a two-and-a-half year duration there has been just one prosecution, a 24-year-old guy who was cautioned for unfaithful in relation to greyhound racing.
However, Mr Tofiluk states there are still eight continuous investigations, and that much beneficial information has also been passed to sports betting authorities.
He said that where an investigation by a sport governing body was quicker, and more cost efficient, then the commission would consider ceasing 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 market were experienced about sports betting and sporting people, and about wagering operations and the motion of cash.
"They look for the vulnerabilities of these to help in their business."
Related internet links
World sports betting Law Report
ICC
Professional Players Federation
Professional Footballers' Association
The FA
Betfair
Sport & Markt
BLP
Gambling Commission
