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Sport sports betting industry seeks to secure itself
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16 September 2010

By Bill Wilson

Business press reporter, BBC News

Betting on sport is substantial company.

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 grown further, with an estimated ₤ 1bn bet on the World Cup alone in the UK this summer season.

Meanwhile, German research study firm Sport & Markt estimates the total global sports betting market will be worth 263bn euros (₤ 220bn) by 2012, with much of that driven by web and sports betting.

But when the stability of occasions are hit the gaming market suffers, and earnings are put under hazard if consumers can not bet with confidence.

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

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

Three of these players have said they will likewise 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 allegations, but was banned last week for six months for failing to report the prohibited technique to him to throw frames.

There are likewise two other continuing investigations - not related 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 sincere, straight and reasonable that is excellent for betting firms because individuals will spend money sports betting with confidence," he states.

"If you take the Pakistan claims, although unrelated to the UK managed sports betting market ... it is not really a favorable story for sports betting in the UK.

"That is since the understanding is that 'cricket is now something we may have to beware 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, the focus needs to be on sportspersons and sportswomen.

As Simon Taylor of the Professional Players' Federation points out: "The only people who can fix a match are the competitors or the referee."

His organisation represents men 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 insufficient to simply have deterrents, sanctions and disciplinary procedures, however that the way to tackle potential concerns around players is also through education.

Mr Taylor states guidelines require to be described clearly to gamers with clear examples, and by people they appreciate.

"Through educating players about sports betting you enhance stability which is in everyone's interest," he includes.

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

'Brand damage'

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

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

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

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

He said that when a good reputation was lost, the damage to a sport was "incalculable".

FA guidelines indicate gamers are not enabled to bet on a competitors in which they are included.

Mr Johnson says gamers need to be seen not to be capitalizing any inside understanding, which he says could cause "brand damage" to football and its competitors.

So, even a 2nd Division gamer knocked out of the FA Cup in the autumn can not wager on a Manchester United v Chelsea cup last the following spring.

"We need to overcome to gamers the reputational danger to the video game," he says. "Once confidence has actually been harmed it is tough to get it back - mud sticks."

'Overwhelmingly legal'

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

The Gambling Commission was established under the Gambling Act 2005 to manage industrial gambling in Great Britain.

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

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

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

"Such unfaithful has the potential to weaken the integrity of a sport, and it likewise damages the business interests of sports betting bodies and sports betting wagering."

The commission has established an internal Sports Betting Intelligence Unit to get and distribute information to sporting authorities, wagering firms and policing authorities.

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

"We will notify sports betting of our issues, to assist avoid or cut [prohibited] 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 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 says there are still 8 continuous investigations, which much useful info has likewise been passed to sports betting authorities.

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

Meanwhile, he states a lot of those seeking to cheat the sports betting wagering industry were experienced about sports betting and sporting people, and about wagering operations and the movement of money.

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

Related internet links

World sports betting Law Report

ICC
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Professional Players Federation

Professional Footballers' Association

The FA

Betfair

Sport & Markt

BLP
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Gambling Commission

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