Sport wagering industry looks to protect itself

16 September 2010

By Bill Wilson

Business reporter, BBC News

sports betting on sport is huge service.

Sport England approximates 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 likely to have grown even more, with an approximated ₤ 1bn bet on the World Cup alone in the UK this summer season.

Meanwhile, German research study company Sport & Markt estimates the overall global 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 hit the gaming industry suffers, and incomes are put under hazard if clients 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 discuss the sports betting gambling market now.

"Not just is it a considerable market in world company, it is one that is now on the front pages of papers."

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

Three of these players have said 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 allegations, but was prohibited last week for six months for stopping working to report the illegal approach to him to toss frames.
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There are also 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 benefits wagering firms due to the fact that individuals will invest money sports betting with self-confidence," he says.

"If you take the Pakistan allegations, although unassociated to the UK controlled wagering market ... it is not actually a favorable story for wagering in the UK.

"That is due to the fact that the understanding is that 'cricket is now something we might have to take care about'."

'Education'

So what can be done to prevent future scandals?

According to experts 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 mentions: "The only people who can repair a match are the competitors or the referee."

His organisation represents guys 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 not sufficient to merely have deterrents, sanctions and disciplinary procedures, but that the way to deal with potential problems around players is likewise through education.

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

"Through informing gamers about sports betting wagering you reinforce integrity which remains in everybody's interest," he adds.

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

'Brand damage'
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Matt Johnson, head of regulative legal guidance at the Football Association, agrees.

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

"It is necessary that sport is straight, and is seen to be straight," he adds.

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

He said that when a good track record was lost, the damage to a sport was "enormous".

FA guidelines suggest players are not enabled to bet on a competition in which they are involved.

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

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

'Overwhelmingly legal'

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

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

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

"The overwhelming majority of sports betting wagering taking place through UK operators is legal and fair," he says.

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

"Such cheating has the potential to weaken the integrity of a sport, and it likewise harms the industrial interests of sports betting bodies and sports betting."

The commission has developed an in-house Sports Betting Intelligence Unit to get and share details to sporting authorities, sports betting companies and policing authorities.

"Since 2007 we have actually experienced a significant insight into world of corrupt sports betting wagering," he states.
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"We will inform sports betting of our concerns, to assist avoid or curtail [unlawful] activity"

In May 2010, the commission also introduced a personal 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 cautioned for cheating in relation to greyhound racing.
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However, Mr Tofiluk says there are still eight ongoing examinations, and that much beneficial info has actually likewise been passed to sports betting authorities.

He stated that where an examination by a sport governing body was quicker, and more cost effective, then the commission would consider stopping a criminal examination "in favour of letting sports betting take the lead".
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Meanwhile, he says much of those wanting to cheat the sports betting wagering market were experienced about sports betting and sporting people, and about sports betting operations and the movement of cash.

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

Related internet links
bit.ly
World sports betting Law Report

ICC

Professional Players Federation

Professional Footballers' Association

The FA

Betfair

Sport & Markt

BLP

Gambling Commission