Sport Betting Industry Wants To Protect Itself

Sport betting industry looks to protect itself

16 September 2010

By Bill Wilson

Business reporter, BBC News

Betting on sport is big business.

Sport England estimates the worth of costs on sport-related gambling 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 estimated ₤ 1bn bet on the World Cup alone in the UK this summer season.

Meanwhile, German research firm Sport & Markt approximates the total international sports betting market will deserve 263bn euros (₤ 220bn) by 2012, with much of that driven by internet and sports betting gambling.

But when the stability of events are struck the gambling industry suffers, and earnings are put under risk if clients 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 talks about the sports betting gambling market now.

"Not only is it a significant market in world business, it is one that is now on the front pages of newspapers."

Four Pakistan cricketers have 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 also challenge the corruption charges installed versus 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 banned recently for six months for failing to report the prohibited approach to him to toss frames.

There are also two other continuing examinations - not associated to Mr Higgins - into snooker.

'Honest'

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

"If the sport is viewed as sincere, straight and fair that is great for betting firms because people will invest cash betting with self-confidence," he says.

"If you take the Pakistan accusations, although unrelated to the UK controlled wagering market ... it is not actually a positive story for wagering 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 prevent future scandals?

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

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

He thinks that it is not adequate to simply have deterrents, sanctions and disciplinary procedures, however that the way to take on potential concerns around gamers is likewise through education.

Mr Taylor says rules require to be described clearly to gamers with clear examples, and by people they respect.

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

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

'Brand damage'

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

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

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

"If it loses that then individuals don't want to wager, that is not in sports betting firms' interests, and it is not in our interests."

He stated that as soon as a good track record was lost, the damage to a sport was "enormous".

FA rules mean gamers are not allowed to bank on a competitors in which they are involved.

Mr Johnson states gamers have actually to be seen not to be capitalizing any inside knowledge, which he states might cause "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 need to overcome to gamers the reputational threat to the game," he states. "Once confidence has actually been damaged it is hard to get it back - mud sticks."

'Overwhelmingly legal'

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

The Gambling Commission was established under the Gambling Act 2005 to regulate industrial sports betting 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 fair," he states.

"But for some there is the temptation to ... corruptly disrupt the outcome of a sporting occasion.

"Such cheating has the potential to undermine the stability of a sport, and it likewise damages the business interests of sports betting bodies and sports betting wagering."

The commission has established an in-house Sports Betting Intelligence Unit to get and distribute info 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 says.

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

In May 2010, the commission likewise introduced a personal telephone hotline for those with information or suspicions.

'Vulnerabilities'

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

However, Mr Tofiluk says there are still eight continuous investigations, and that much beneficial details has 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 discontinuing a criminal investigation "in favour of letting sports betting governing bodies take the lead".

Meanwhile, he says a lot of those wanting to cheat the sports betting market were knowledgeable about sports betting and sporting people, and about wagering operations and the movement of cash.

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