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Sport wagering industry looks to secure itself

16 September 2010

By Bill Wilson

Business reporter, BBC News

sports betting on sport is substantial service.

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

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

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

But when the integrity of events are struck the gaming industry suffers, and profits are put under hazard if clients can not wager with confidence.

And there can have been few 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 only is it a significant market in world company, it is one that is now on the front pages of newspapers."
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Four Pakistan cricketers have actually been questioned by authorities over spot-fixing allegations associating with a test versus England at Lord's last month.

Three of these players have actually stated 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 allegations, but was banned recently for six months for failing to report the illegal approach to him to toss frames.

There are likewise 2 other continuing investigations - unrelated to Mr Higgins - into snooker.
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'Honest'

David O'Reilly is legal counsel for Betfair, one of the UK's biggest online sporting exchanges.
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"If the sport is perceived as honest, straight and reasonable that benefits sports betting firms due to the fact that people will invest money wagering with self-confidence," he says.

"If you take the Pakistan accusations, although unassociated to the UK managed sports betting market ... it is not actually a favorable story for betting in the UK.

"That is because the understanding is that 'cricket is now something we may need to be careful 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 has to be on sportsmen and sportswomen.

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

His organisation represents males and females in 15 sports betting in the UK, being an umbrella organisation for all gamer organisations, such as the Professional Footballers' .

He believes that it is inadequate to merely have deterrents, sanctions and disciplinary treatments, however that the way to tackle potential issues around players is also through education.

Mr Taylor states guidelines need to be explained plainly to players with clear examples, and by individuals they appreciate.

"Through informing players about sports betting wagering you enhance stability and that is in everyone'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 regulative legal advice at the Football Association, concurs.

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

"It is important that sport is straight, and is seen to be directly," he adds.
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"If it loses that then individuals do not wish to wager, that is not in sports betting firms' interests, and it is not in our interests."

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

FA rules mean gamers are not enabled to bank on a competition in which they are involved.

Mr Johnson states gamers have actually to be seen not to be cashing in on any inside knowledge, which he states could cause "brand damage" to football and its competitions.

So, even a Second 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 need to get over to players the reputational risk to the video game," he states. "Once self-confidence has actually been damaged it is tough to get it back - mud sticks."

'Overwhelmingly legal'

If this represents the "carrot" method, then possibly 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 sports betting in Great Britain.

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

"The frustrating bulk of sports betting 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 event.

"Such cheating has the potential to undermine the integrity of a sport, and it also harms the business interests of sports betting bodies and sports betting."

The commission has developed an internal Sports Betting Intelligence Unit to get and disseminate details to sporting authorities, sports betting firms and policing authorities.

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

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

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

'Vulnerabilities'

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

However, Mr Tofiluk says there are still 8 continuous investigations, and that much beneficial details has actually likewise 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 think about discontinuing a criminal investigation "in favour of letting sports betting governing bodies take the lead".

Meanwhile, he says a lot of those seeking to cheat the sports betting wagering industry were knowledgeable about sports betting and sporting people, and about wagering operations and the movement of cash.

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

Related web links
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World sports betting Law Report

ICC

Professional Players Federation

Professional Footballers' Association

The FA

Betfair

Sport & Markt

BLP

Gambling Commission

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