Sport wagering industry aims to safeguard itself

16 September 2010
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By Bill Wilson

Business press reporter, BBC News

sports betting on sport is big organization.

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.

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 summertime.

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

But when the integrity 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 few higher-profile sport wagering stories than those affecting 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 significant market in world organization, it is one that is now on the front pages of papers."

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

Three of these players have stated they will likewise 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, but was banned recently for 6 months for failing to report the prohibited approach to him to throw frames.

There are likewise 2 other continuing investigations - not related 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 truthful, straight and reasonable that is excellent for sports betting companies because individuals will invest money sports betting with confidence," he states.

"If you take the Pakistan allegations, although unassociated to the UK controlled wagering industry ... it is not really a favorable story for sports betting in the UK.

"That is because the perception is that 'cricket is now something we may have to beware 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 has to be on sportsmen and sportswomen.

As Simon Taylor of the Professional Players' Federation points out: "The only people who can repair 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 gamer organisations, such as the Professional Footballers' Association.

He believes that it is not sufficient to merely have deterrents, sanctions and disciplinary treatments, however that the way to tackle prospective concerns around gamers is likewise through education.

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

"Through informing gamers about sports betting you enhance stability and that remains in everybody's interest," he adds.

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

'Brand damage'

Matt Johnson, head of regulative legal recommendations 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 important that sport is directly, and is seen to be straight," he includes.

"If it loses that then individuals do not desire to bet, that is not in gaming firms' interests, and it is not in our interests."

He said that once an excellent track record was lost, the damage to a sport was "incalculable".

FA guidelines mean players are not allowed to wager on a competitors in which they are involved.

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

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

"We have to overcome to gamers the reputational threat to the video game," he states. "Once confidence has been harmed it is hard to get it back - mud sticks."

'Overwhelmingly legal'

If this represents the "carrot" technique, then maybe Nick Tofiluk, 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 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 bulk of sports betting wagering occurring through UK operators is legal and fair," he states.

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

"Such unfaithful has the possible to weaken the stability of a sport, and it also hurts the industrial interests of sports betting bodies and sports betting wagering."

The commission has established an in-house Sports Betting Intelligence Unit to receive and disseminate information to sporting authorities, wagering companies and policing authorities.

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

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

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

'Vulnerabilities'

But in a two-and-a-half year period there has been just one criminal prosecution, a 24-year-old man who was warned for unfaithful in relation to greyhound racing.
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However, Mr Tofiluk says there are still eight continuous investigations, and that much beneficial details has likewise been passed to sports betting authorities.

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

Meanwhile, he says a number of those seeking to cheat the sports betting wagering industry were experienced about sports betting and sporting people, and about wagering operations and the motion of money.

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

Related web links

World sports betting Law Report

ICC

Professional Players Federation

Professional Footballers' Association

The FA
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Betfair

Sport & Markt

BLP

Gambling Commission

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