Sport Betting Industry Wants To Protect Itself

Sport wagering industry looks to secure itself

16 September 2010

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By Bill Wilson

Business reporter, BBC News

sports betting on sport is huge service.

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.

Which figure is most likely to have grown further, with an estimated ₤ 1bn bet on the World Cup alone in the UK this summertime.

Meanwhile, German research firm 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 sports betting industry suffers, and incomes are put under danger if clients can not bet with confidence.

And there can have been couple of higher-profile sport wagering stories than those impacting 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 business, it is one that is now on the front pages of newspapers."

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

Three of these gamers have actually 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 accusations, however was prohibited recently for 6 months for stopping working to report the prohibited technique to him to toss frames.

There are likewise 2 other continuing investigations - not associated to Mr Higgins - into snooker.

'Honest'

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

"If the sport is perceived as honest, straight and fair that is good for wagering companies because individuals will spend money wagering with self-confidence," he says.

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

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

'Education'

So what can be done to avoid future scandals?

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

As Simon Taylor of the Professional Players' Federation explains: "The only individuals 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 insufficient to simply have deterrents, sanctions and disciplinary treatments, but that the method to tackle prospective concerns around gamers is likewise through education.

Mr Taylor says guidelines need to be discussed clearly to players with clear examples, and by people they appreciate.

"Through educating players about sports betting wagering you reinforce stability which remains in everyone's interest," he adds.

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

'Brand damage'

Matt Johnson, head of regulatory legal advice at the Football Association, agrees.

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

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

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

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

FA guidelines imply players are not allowed to wager on a competitors in which they are included.

Mr Johnson says gamers need to be seen not to be cashing in on any inside understanding, which he states might 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 wager on a Manchester United v Chelsea cup final the following spring.

"We have to get over to players the reputational risk to the video game," he states. "Once confidence has actually been damaged it is tough to get it back - mud sticks."

'Overwhelmingly legal'

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

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

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

"The frustrating majority of sports betting wagering 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 occasion.

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

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

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

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

In May 2010, the commission also presented a personal 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 unfaithful in relation to greyhound racing.

However, Mr Tofiluk says there are still eight ongoing investigations, 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 consider ceasing a criminal investigation "in favour of letting sports betting governing bodies take the lead".

Meanwhile, he says many of those wanting to cheat the sports betting wagering market were experienced about sports betting and sporting individuals, and about wagering operations and the movement of cash.

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