Sport Betting Industry Seeks To Protect Itself

Sport wagering industry wants to safeguard itself

16 September 2010

By Bill Wilson

Business reporter, BBC News

sports betting on sport is huge organization.

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

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

Meanwhile, German research company Sport & Markt approximates the overall global sports betting market will be worth 263bn euros (₤ 220bn) by 2012, with much of that driven by internet and sports betting gambling.

But when the stability of occasions are hit the sports betting industry suffers, and earnings are put under risk if customers can not bet 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 market now.

"Not just is it a substantial market in world organization, it is one that is now on the front pages of papers."

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

Three of these players have actually said they will likewise challenge the corruption charges mounted against the trio by the sport governing body the International Cricket Council.

Meanwhile, three-times snooker world champ John Higgins was cleared of match-fixing claims, but was prohibited last week for six months for stopping working to report the illegal technique to him to toss frames.

There are also two other continuing examinations - not associated to Mr Higgins - into snooker.

'Honest'

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

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"If the sport is perceived as truthful, straight and fair that benefits wagering firms because individuals will spend cash wagering with self-confidence," he states.

"If you take the Pakistan allegations, although unassociated to the UK controlled wagering market ... it is not actually a favorable story for wagering in the UK.

"That is due to the fact that the understanding is that 'cricket is now something we may have to beware about'."

'Education'

So what can be done to prevent future scandals?

According to professionals 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 mentions: "The only individuals who can fix a match are the rivals or the referee."

His organisation represents men and women 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 enough to merely have deterrents, sanctions and disciplinary treatments, but that the way to take on prospective problems around gamers is likewise through education.

Mr Taylor states rules require to be explained clearly to gamers with clear examples, and by individuals they respect.

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

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

'Brand damage'

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

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

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

"If it loses that then people do not want to wager, that is not in gambling companies' interests, and it is not in our interests."

He stated that once a great track record was lost, the damage to a sport was "incalculable".

FA rules mean players are not enabled to bank on a competition in which they are included.

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

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

"We need to get over to players the reputational threat to the video game," he says. "Once self-confidence has actually been harmed it is hard to get it back - mud sticks."

'Overwhelmingly legal'

If this represents the "carrot" method, 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 gaming in Great Britain.

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

"The frustrating majority of sports betting wagering happening through UK operators is legal and reasonable," he says.

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

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

The commission has developed an in-house Sports Betting Intelligence Unit to receive and disseminate details to sporting authorities, wagering firms and policing authorities.

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

"We will alert sports betting of our issues, to help prevent or cut [prohibited] activity"

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

'Vulnerabilities'

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

However, Mr Tofiluk states there are still 8 continuous investigations, which much useful info has actually also been passed to sports betting authorities.

He stated that where an examination by a sport governing body was quicker, and more expense reliable, then the commission would consider stopping a criminal investigation "in favour of letting sports betting governing bodies take the lead".

Meanwhile, he says numerous of those wanting to cheat the sports betting wagering industry were knowledgeable about sports betting and sporting people, and about wagering operations and the movement of money.

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