Sport Betting Industry Wants To Protect Itself

Sport wagering industry seeks to secure itself

16 September 2010

By Bill Wilson

Business reporter, BBC News

sports betting on sport is big business.

Sport England estimates the value of costs 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 actually grown even more, 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 worldwide gaming market will deserve 263bn euros (₤ 220bn) by 2012, with much of that driven by internet and sports betting gaming.

But when the stability of events are struck the gaming industry suffers, and revenues are put under hazard if customers can not bet with confidence.

And there can have been few higher-profile sport 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 considerable market in world service, it is one that is now on the front pages of papers."

Four Pakistan cricketers have actually been questioned by authorities over spot-fixing accusations connecting to a test versus England at Lord's last month.

Three of these gamers have stated 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 allegations, but was prohibited recently for 6 months for failing to report the unlawful technique to him to throw frames.

There are also two other continuing examinations - unrelated 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 viewed as sincere, straight and fair that is good for sports betting firms since people will invest cash betting with self-confidence," he says.

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

"That is since the understanding is that 'cricket is now something we might need 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 sportspersons and sportswomen.

As Simon Taylor of the Professional Players' Federation mentions: "The only people who can fix 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 gamer organisations, such as the Professional Footballers' Association.

He believes that it is not adequate to merely have deterrents, sanctions and disciplinary procedures, but that the way to tackle possible problems around players is also through education.

Mr Taylor states rules need to be discussed plainly to players with clear examples, and by individuals they appreciate.

"Through informing gamers about sports betting you reinforce stability and that is in everybody's interest," he includes.

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

'Brand damage'

Matt Johnson, head of regulative legal advice at the Football Association, concurs.

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

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

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

He stated that once an excellent credibility was lost, the damage to a sport was "enormous".

FA guidelines suggest players are not allowed to bank on a competitors in which they are involved.

Mr Johnson says gamers have to be seen not to be capitalizing any inside understanding, which he states could 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 bet on a Manchester United v Chelsea cup final the following spring.

"We need to overcome to gamers the reputational threat to the game," he states. "Once confidence has been damaged it is tough to get it back - mud sticks."

'Overwhelmingly legal'

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

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

An ex-chief constable of West Midlands cops, 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 occurring through UK operators is legal and fair," he says.

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

"Such unfaithful has the potential to weaken the stability of a sport, and it likewise harms the industrial interests of sports betting bodies and sports betting wagering."

The commission has established an in-house Sports Betting Intelligence Unit to get and disseminate info to sporting authorities, wagering firms and policing authorities.

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

"We will alert sports betting of our concerns, to assist prevent or reduce [illegal] activity"

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

'Vulnerabilities'

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

However, Mr Tofiluk says there are still 8 continuous examinations, which much beneficial info has likewise been passed to sports betting authorities.

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

Meanwhile, he says much of those seeking to cheat the sports betting wagering market were knowledgeable about sports betting and sporting individuals, and about wagering operations and the motion of cash.

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