Sport Betting Industry Seeks To Protect Itself

Sport sports betting market looks to protect itself

16 September 2010

By Bill Wilson

Business press reporter, BBC News

sports betting on sport is substantial company.

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

And that figure is most likely to have 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 overall worldwide sports betting market will deserve 263bn euros (₤ 220bn) by 2012, with much of that driven by web and sports betting gaming.

But when the stability of occasions are struck the gaming industry suffers, and profits are put under risk if customers can not bet with self-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 talks about 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 papers."

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

Three of these gamers have actually said they will also challenge the corruption charges installed 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 accusations, however was prohibited recently for 6 months for failing to report the prohibited method to him to throw frames.

There are also two other continuing investigations - not related to Mr Higgins - into snooker.

'Honest'

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

"If the sport is perceived as sincere, straight and reasonable that benefits sports betting companies because individuals will spend money wagering with confidence," he states.

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

"That is due to the fact that the perception 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 points out: "The only people who can fix a match are the competitors or the referee."

His organisation represents men and ladies 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 not adequate to merely have deterrents, sanctions and disciplinary procedures, but that the method to take on prospective problems around gamers is likewise through education.

Mr Taylor says guidelines need to be explained clearly to gamers with clear examples, and by people they respect.

"Through informing players about sports betting you strengthen integrity which remains 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 guidance at the Football Association, concurs.

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

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

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

He said that once a good credibility was lost, the damage to a sport was "enormous".

FA rules imply players are not enabled to wager on a competition in which they are included.

Mr Johnson states gamers need to be seen not to be cashing in on any inside knowledge, which he says could trigger "brand name damage" to football and its competitions.

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

"We need to get over to gamers the reputational danger to the video game," he states. "Once confidence has actually been harmed it is tough to get it back - mud sticks."

'Overwhelmingly legal'

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

An ex-chief constable of West Midlands police, Mr Tofiluk has duty 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 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 occasion.

"Such cheating has the possible to undermine the integrity of a sport, and it also hurts the commercial interests of sports betting bodies and sports betting."

The commission has developed an internal Sports Betting Intelligence Unit to get and distribute information to sporting authorities, sports betting companies and policing authorities.

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

"We will alert sports betting of our issues, to assist prevent or curtail [unlawful] activity"

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

'Vulnerabilities'

But in a two-and-a-half year period 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 eight ongoing examinations, and that much beneficial details has likewise been passed to sports betting authorities.

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

Meanwhile, he states a number of those wanting to cheat the sports betting industry were knowledgeable about sports betting and sporting individuals, and about wagering operations and the motion of money.

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