Sport wagering industry aims to safeguard itself

16 September 2010
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By Bill Wilson

Business reporter, BBC News

Betting on sport is substantial company.

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

And that figure is most 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 firm Sport & Markt approximates the overall international sports betting market will deserve 263bn euros (₤ 220bn) by 2012, with much of that driven by internet and sports betting.

But when the integrity of occasions are struck the gambling market suffers, and revenues are put under risk if customers can not wager with self-confidence.

And there can have been couple of higher-profile sport sports betting stories than those impacting 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 considerable market in world business, it is one that is now on the front pages of papers."

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

Three of these gamers 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 champion John Higgins was cleared of match-fixing allegations, however was prohibited recently for six months for stopping working to report the unlawful technique to him to throw frames.

There are likewise 2 other continuing examinations - not related to Mr Higgins - into snooker.

'Honest'

David O'Reilly is legal counsel for Betfair, one of the UK's most significant online sporting exchanges.

"If the sport is viewed as honest, straight and reasonable that is excellent for wagering companies due to the fact that individuals will invest cash sports betting with confidence," he says.

"If you take the Pakistan accusations, although unrelated to the sports betting industry ... it is not truly a positive story for sports betting in the UK.

"That is due to the fact that the understanding is that 'cricket is now something we might have to be cautious 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 gambling, the focus needs to be on sportsmen and sportswomen.

As Simon Taylor of the Professional Players' Federation explains: "The only individuals who can fix a match are the rivals or the referee."
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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 merely have deterrents, sanctions and disciplinary treatments, but that the method to deal with potential problems around players is also through education.

Mr Taylor says guidelines require to be described clearly to players with clear examples, and by people they respect.

"Through educating gamers about sports betting wagering you strengthen stability which remains in everybody's interest," he adds.

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

'Brand damage'

Matt Johnson, head of regulatory legal advice at the Football Association, concurs.

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

"It is crucial that sport is straight, and is seen to be straight," he includes.

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

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

FA guidelines imply players are not permitted to bet on a competition in which they are involved.

Mr Johnson says players have to be seen not to be cashing in on any inside understanding, which he states could cause "brand damage" to football and its competitions.
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So, even a Second Division gamer knocked out of the FA Cup in the fall can not wager on a Manchester United v Chelsea cup last the following spring.

"We need to overcome to gamers the reputational risk to the game," he states. "Once confidence has been damaged it is difficult to get it back - mud sticks."

'Overwhelmingly legal'

If this represents the "carrot" technique, then maybe Nick Tofiluk, director of guideline at the Gambling Commission, represents the "stick".
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The Gambling Commission was set up under the Gambling Act 2005 to manage business sports betting in Great Britain.

An ex-chief constable of West Midlands police, Mr Tofiluk has obligation for policing all wagering 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 states.
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"But for some there is the temptation to ... corruptly disrupt the outcome of a sporting occasion.

"Such unfaithful has the prospective to weaken the integrity of a sport, and it also hurts the commercial interests of sports betting bodies and sports betting wagering."

The commission has actually established 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 substantial insight into world of corrupt sports betting," he states.

"We will alert sports betting of our issues, to assist prevent or curtail [illegal] 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 actually been just one prosecution, a 24-year-old guy who was warned for unfaithful in relation to greyhound racing.

However, Mr Tofiluk says there are still eight ongoing examinations, and that much beneficial information has likewise been passed to sports betting authorities.

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

Meanwhile, he says many of those looking to cheat the sports betting industry were experienced about sports betting and sporting individuals, and about sports betting operations and the motion of money.

"They seek out the vulnerabilities of these to assist in their business."

Related internet links

World sports betting Law Report

ICC

Professional Players Federation

Professional Footballers' Association

The FA

Betfair

Sport & Markt

BLP

Gambling Commission

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