Sport Betting Industry Aims To Protect Itself

Sport sports betting industry aims to protect itself

16 September 2010

By Bill Wilson

Business reporter, BBC News

sports betting on sport is huge service.

Sport England approximates the worth of spending 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 firm Sport & Markt estimates the general worldwide gaming market will deserve 263bn euros (₤ 220bn) by 2012, with much of that driven by internet and sports betting gambling.

But when the integrity of occasions are hit the gambling market suffers, and revenues are put under danger if consumers can not bet with confidence.

And there can have been couple of 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 just is it a substantial market in world service, it is one that is now on the front pages of newspapers."

Four Pakistan cricketers have been questioned by cops over spot-fixing accusations relating to a test against England at Lord's last month.

Three of these gamers 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 accusations, but was prohibited recently for 6 months for failing to report the unlawful method to him to throw frames.

There are likewise two other continuing investigations - 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 fair that is great for sports betting companies because individuals will invest cash wagering with confidence," he says.

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

"That is because the understanding is that 'cricket is now something we may need to take care 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 people who can fix a match are the competitors 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 simply have deterrents, sanctions and disciplinary procedures, but that the way to deal with prospective concerns around gamers is also through education.

Mr Taylor says guidelines require to be described plainly to players with clear examples, and by individuals they appreciate.

"Through educating players about sports betting you reinforce stability which is in everybody's interest," he includes.

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

'Brand damage'

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

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

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

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

He said that when an excellent credibility was lost, the damage to a sport was "incalculable".

FA rules imply players are not enabled to bank on a competition in which they are involved.

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

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

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

'Overwhelmingly legal'

If this represents the "carrot" technique, then perhaps 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 sports betting in Great Britain.

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

"The frustrating majority of sports betting taking location through UK operators is legal and fair," he states.

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

"Such cheating has the prospective to undermine the stability of a sport, and it likewise damages the commercial interests of sports betting bodies and sports betting wagering."

The commission has actually developed an internal Sports Betting Intelligence Unit to receive and disseminate information to sporting authorities, wagering companies and policing authorities.

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

"We will alert sports betting of our concerns, to help avoid or reduce [prohibited] activity"

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

'Vulnerabilities'

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

However, Mr Tofiluk says there are still 8 continuous examinations, and that much useful information has likewise 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 a lot of those aiming to cheat the sports betting industry were well-informed about sports betting and sporting individuals, and about sports betting operations and the movement of cash.

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