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Sport wagering market wants to protect itself

16 September 2010
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By Bill Wilson

Business reporter, BBC News

sports betting on sport is substantial company.
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Sport England estimates the worth of spending on sport-related gaming in England grew from ₤ 1.7 bn in 1985 to ₤ 2.8 bn in 2008.

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

Meanwhile, German research company Sport & Markt approximates the overall 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 hit the gaming market suffers, and revenues are put under threat if customers can not wager with confidence.

And there can have been couple of higher-profile sport sports betting stories than those affecting cricket and snooker this year.

High-profile

As Sport & Markt's Gareth Moore observes: "Everyone speak about the sports betting market now.

"Not only 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 accusations associating with a test against England at Lord's last month.

Three of these players have 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, however was banned recently for 6 months for stopping working to report the unlawful approach to him to throw frames.

There are also two other continuing investigations - unrelated 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 viewed as honest, straight and reasonable that is excellent for sports betting companies due to the fact that people will invest money wagering with confidence," he states.

"If you take the Pakistan claims, although unassociated to the UK managed sports betting market ... it is not truly a positive story for sports betting in the UK.

"That is because the understanding is that 'cricket is now something we may need to be mindful about'."

'Education'
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So what can be done to prevent future scandals?

According to professionals at a World sports betting Law Report conference into sports betting gambling, the focus has to be on sportspersons and sportswomen.

As Simon Taylor of the Professional Players' Federation explains: "The only people who can fix 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' Association.

He thinks that it is insufficient to merely have deterrents, sanctions and disciplinary procedures, however that the way to take on possible concerns around gamers is also through education.

Mr Taylor says rules need to be described plainly to players with clear examples, and by individuals they appreciate.

"Through informing players about sports betting wagering you reinforce integrity which is in everyone's interest," he includes.

"If players are harder to corrupt then sport will be harder to corrupt."

'Brand damage'

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

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

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

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

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

FA rules imply gamers are not permitted to bet on a competitors in which they are involved.

Mr Johnson says players have to be seen not to be cashing in on any inside understanding, which he says might trigger "brand damage" to football and its competitors.

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 have to get over to players the reputational threat to the game," he says. "Once confidence has actually been harmed it is tough to get it back - mud sticks."

'Overwhelmingly legal'

If this represents the "carrot" approach, then possibly Nick Tofiluk, director of guideline at the Gambling Commission, represents the "stick".

The Gambling Commission was under the Gambling Act 2005 to control business gambling in Great Britain.

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

"The overwhelming bulk of sports betting taking place through UK operators is legal and reasonable," he states.

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

"Such unfaithful has the potential to weaken the stability of a sport, and it also harms the commercial interests of sports betting bodies and sports betting wagering."

The commission has established an internal Sports Betting Intelligence Unit to get and disseminate information to sporting authorities, wagering companies and policing authorities.

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

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

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

'Vulnerabilities'

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

However, Mr Tofiluk says there are still eight ongoing investigations, and that much useful details has actually also been passed to sports betting authorities.

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

Meanwhile, he states many of those seeking to cheat the sports betting wagering market were educated about sports betting and sporting people, and about wagering operations and the movement of money.

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

Related internet links

World sports betting Law Report

ICC

Professional Players Federation

Professional Footballers' Association

The FA

Betfair

Sport & Markt

BLP
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Gambling Commission

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