Sport Betting Industry Seeks To Protect Itself

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Sport sports betting market looks to safeguard itself

16 September 2010

By Bill Wilson

Business press reporter, BBC News

sports betting on sport is huge business.

Sport England approximates the value of costs 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 actually grown further, with an approximated ₤ 1bn bet on the World Cup alone in the UK this summer season.

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

But when the integrity of events are struck the gambling industry suffers, and profits are put under hazard if customers can not wager with self-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 discuss the sports betting market now.

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

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

Three of these gamers have actually stated they will also 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 accusations, but was prohibited last week for six months for failing to report the illegal approach to him to toss frames.

There are likewise two other continuing examinations - 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 sincere, straight and fair that is good for betting companies because individuals will spend cash sports betting with confidence," he says.

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

"That is because the perception is that 'cricket is now something we might need to beware about'."

'Education'

So what can be done to avoid future scandals?

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

As Simon Taylor of the Professional Players' Federation mentions: "The only people who can fix 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 player organisations, such as the Professional Footballers' Association.

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

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

"Through informing players about sports betting wagering you reinforce integrity and that is in everyone'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 regulatory legal advice at the Football Association, agrees.

"Prevention is much better than cure, and we likewise make a point of telling players 'you are going to be captured'."

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

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

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

FA guidelines indicate gamers are not permitted to bank on a competition in which they are involved.

Mr Johnson states players have actually to be seen not to be cashing in on any inside understanding, which he says might trigger "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 players the reputational risk to the game," he states. "Once self-confidence has actually been damaged it is difficult to get it back - mud sticks."

'Overwhelmingly legal'

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

The Gambling Commission was set up under the Gambling Act 2005 to regulate commercial sports betting 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 sports betting, which is the remit of the FSA.

"The frustrating bulk of sports betting occurring through UK operators is legal and reasonable," he states.

"But for some there is the temptation to ... corruptly interfere with the outcome of a sporting event.

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

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

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

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

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

'Vulnerabilities'

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

However, Mr Tofiluk states there are still 8 continuous examinations, which much beneficial information has actually likewise been passed to sports betting authorities.

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

Meanwhile, he states many of those wanting to cheat the sports betting wagering market were knowledgeable about sports betting and sporting individuals, and about sports betting operations and the motion of cash.

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