Sport Betting Industry Seeks To Protect Itself

Sport wagering market looks to safeguard 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 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 further, with an approximated ₤ 1bn bet on the World Cup alone in the UK this summer.

Meanwhile, German research study company Sport & Markt estimates the total worldwide gaming market will deserve 263bn euros (₤ 220bn) by 2012, with much of that driven by web and sports betting gambling.

But when the integrity of events are hit the sports betting market suffers, and profits are put under danger if customers can not wager with confidence.

And there can have been couple of higher-profile sport wagering 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 cops over spot-fixing claims associating with a test versus England at Lord's last month.

Three of these players have actually said they will likewise challenge the corruption charges mounted 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 allegations, but was prohibited recently for six months for stopping working to report the unlawful technique to him to toss frames.

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

'Honest'

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

"If the sport is perceived as sincere, straight and reasonable that is good for wagering firms due to the fact that individuals will invest cash sports betting with confidence," he says.

"If you take the Pakistan accusations, although unrelated to the UK controlled sports betting market ... it is not really a favorable story for sports betting in the UK.

"That is since the understanding is that 'cricket is now something we may need to take care 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 sportspersons and sportswomen.

As Simon Taylor of the Professional Players' Federation points out: "The only individuals who can fix a match are the rivals or the referee."

His organisation represents guys and women 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 not enough to merely have deterrents, sanctions and disciplinary treatments, but that the way to tackle possible issues around gamers is also through education.

Mr Taylor says rules require to be described plainly to gamers with clear examples, and by people they respect.

"Through educating gamers about sports betting wagering you reinforce integrity which remains in everybody's interest," he adds.

"If players are harder to corrupt then sport will be more difficult to corrupt."

'Brand damage'

Matt Johnson, head of regulative legal recommendations at the Football Association, agrees.

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

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

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

He said that as soon as a great credibility was lost, the damage to a sport was "enormous".

FA guidelines indicate 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 cause "brand name damage" to football and its competitors.

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

"We have to overcome to players the reputational threat to the video game," he says. "Once self-confidence has actually 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 guideline at the Gambling Commission, represents the "stick".

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

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

"The overwhelming bulk of sports betting wagering taking place through UK operators is legal and fair," he states.

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

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

The commission has developed an in-house Sports Betting Intelligence Unit to receive and share information to sporting authorities, sports betting firms and policing authorities.

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

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

In May 2010, the commission likewise presented a personal telephone hotline for those with info or suspicions.

'Vulnerabilities'

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

However, Mr Tofiluk states there are still 8 continuous investigations, which much useful details has also 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 ceasing a criminal investigation "in favour of letting sports betting governing bodies take the lead".

Meanwhile, he says much of those seeking to cheat the sports betting wagering industry were educated about sports betting and sporting people, and about wagering operations and the motion of money.

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