Sport betting industry aims to safeguard itself
bit.ly
16 September 2010
bit.ly
By Bill Wilson

Business press reporter, BBC News

sports betting on sport is huge business.

Sport England estimates the worth 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 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 company Sport & Markt estimates the overall worldwide sports betting market will be worth 263bn euros (₤ 220bn) by 2012, with much of that driven by web and sports betting gambling.

But when the integrity of occasions are hit the betting industry suffers, and revenues are put under danger if consumers can not wager with self-confidence.

And there can have been couple of 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 only is it a substantial 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 claims relating to a test against 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 champion John Higgins was cleared of match-fixing accusations, but was prohibited last week for six months for failing to report the prohibited method to him to toss frames.

There are also two other continuing examinations - unrelated to Mr Higgins - into snooker.

'Honest'

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

"If the sport is viewed as honest, straight and reasonable that is good for sports betting companies because individuals will invest money wagering with confidence," he states.

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

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

'Education'

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 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 enough to simply have deterrents, sanctions and disciplinary treatments, but that the way to take on prospective problems around gamers is also through education.

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

"Through informing players about sports betting wagering you strengthen integrity and that is in everybody's interest," he includes.

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

'Brand damage'

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

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

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

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

He said that when a great reputation was lost, the damage to a sport was "enormous".

FA guidelines imply gamers are not permitted to bank on a competitors in which they are involved.
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Mr Johnson states gamers need to be seen not to be capitalizing any inside understanding, which he states might cause "brand name damage" to football and its competitions.

So, even a Second Division gamer knocked out of the FA Cup in the autumn can not wager on a Manchester United v Chelsea cup final the following spring.

"We need to get over to players the reputational danger 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" method, then maybe Nick Tofiluk, director of guideline at the Gambling Commission, represents the "stick".

The Gambling Commission was established under the Gambling Act 2005 to control commercial in Great Britain.
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An ex-chief constable of West Midlands authorities, Mr Tofiluk has responsibility for policing all wagering in the UK apart from spread wagering, which is the remit of the FSA.

"The overwhelming bulk of sports betting happening through UK operators is legal and reasonable," he says.

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

"Such cheating has the possible to weaken the integrity of a sport, and it also hurts the business 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, wagering firms and policing authorities.

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

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

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

'Vulnerabilities'

But in a two-and-a-half year period there has actually been simply one criminal prosecution, a 24-year-old guy who was warned for cheating in relation to greyhound racing.

However, Mr Tofiluk says there are still 8 continuous investigations, which much useful information has also been passed to sports betting authorities.

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

Meanwhile, he says numerous of those aiming to cheat the sports betting wagering market were well-informed 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 business."

Related internet links

World sports betting Law Report

ICC

Professional Players Federation

Professional Footballers' Association

The FA
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Betfair

Sport & Markt
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BLP

Gambling Commission