Sport Betting Industry Looks To Protect Itself

Sport wagering market looks to safeguard itself

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16 September 2010

By Bill Wilson

Business reporter, BBC News

sports betting on sport is huge organization.

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

Which figure is likely to have grown further, with an approximated ₤ 1bn bet on the World Cup alone in the UK this summer.

Meanwhile, German research firm Sport & Markt approximates the overall international gaming market will deserve 263bn euros (₤ 220bn) by 2012, with much of that driven by web and sports betting.

But when the stability of events are hit the gambling industry suffers, and earnings are put under risk if consumers can not bet with confidence.

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

High-profile

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

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

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

Three of these players have actually said they will likewise challenge the corruption charges installed 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 allegations, however was banned recently for six months for failing to report the illegal method to him to throw frames.

There are also two other continuing investigations - 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 truthful, straight and fair that benefits wagering firms due to the fact that individuals will spend money sports betting with confidence," he says.

"If you take the Pakistan claims, although unassociated to the UK regulated wagering industry ... it is not really a positive story for wagering in the UK.

"That is since the perception is that 'cricket is now something we may need to beware about'."

'Education'

So what can be done to avoid future scandals?

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

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

His organisation represents guys and ladies 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 adequate to merely have deterrents, sanctions and disciplinary treatments, however that the method to deal with possible concerns around gamers is likewise through education.

Mr Taylor states guidelines need to be described plainly to gamers with clear examples, and by people they respect.

"Through educating gamers about sports betting you enhance integrity and that is in everyone's interest," he adds.

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

'Brand damage'

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

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

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

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

He stated that when a great credibility was lost, the damage to a sport was "incalculable".

FA guidelines indicate gamers are not enabled to bank on a competition in which they are involved.

Mr Johnson states gamers have to be seen not to be capitalizing any inside understanding, which he says might cause "brand damage" to football and its competitions.

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

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

'Overwhelmingly legal'

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

The Gambling Commission was established under the Gambling Act 2005 to manage commercial gambling in Great Britain.

An ex-chief constable of West Midlands authorities, Mr Tofiluk has obligation 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 occurring through UK operators is legal and reasonable," he says.

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

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

The commission has actually established an internal Sports Betting Intelligence Unit to get and disseminate information to sporting authorities, wagering firms and policing authorities.

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

"We will notify sports betting of our concerns, to help avoid or cut [unlawful] activity"

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

'Vulnerabilities'

But in a two-and-a-half year duration there has been just one criminal prosecution, a 24-year-old man who was warned for cheating in relation to greyhound racing.

However, Mr Tofiluk says there are still 8 continuous examinations, and that much beneficial details 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 effective, then the commission would think about stopping a criminal investigation "in favour of letting sports betting governing bodies take the lead".

Meanwhile, he states numerous of those aiming to cheat the sports betting market were educated about sports betting and sporting people, and about wagering operations and the movement of money.

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