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Sport betting market looks to safeguard itself

16 September 2010

By Bill Wilson

Business reporter, BBC News

sports betting on sport is substantial organization.

Sport England estimates the value of spending 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 further, with an estimated ₤ 1bn bet on the World Cup alone in the UK this summer.

Meanwhile, German research study firm Sport & Markt approximates the overall 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 integrity of events are hit the gambling industry suffers, and earnings are put under risk if customers can not bet with self-confidence.

And there can have been couple of higher-profile sport sports betting stories than those impacting cricket and snooker this year.

High-profile

As Sport & Markt's Gareth Moore observes: "Everyone discuss the sports betting gambling market now.
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"Not just is it a considerable market in world organization, it is one that is now on the front pages of papers."

Four Pakistan cricketers have been questioned by authorities over spot-fixing allegations relating to a test against England at Lord's last month.

Three of these gamers have said they will likewise challenge the corruption charges mounted 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, however was prohibited recently for six months for stopping working to report the prohibited technique to him to throw frames.

There are also two other continuing investigations - not related to Mr Higgins - into snooker.

'Honest'

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

"If the sport is perceived as sincere, straight and fair that benefits betting companies due to the fact that people will spend money wagering with confidence," he says.

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

"That is due to the fact that the understanding is that 'cricket is now something we might need to be cautious about'."

'Education'

So what can be done to avoid future scandals?

According to experts 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 points out: "The only individuals who can repair a match are the rivals or the referee."

His organisation represents males and ladies 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 not sufficient to simply have deterrents, sanctions and disciplinary procedures, but that the way to deal with potential problems around players is likewise through education.

Mr Taylor says guidelines require to be explained clearly to players with clear examples, and by individuals they respect.

"Through informing players about sports betting wagering you reinforce stability which is in everybody's interest," he adds.

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

'Brand damage'

Matt Johnson, head of regulative legal recommendations at the Football Association, agrees.

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

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

"If it loses that then people do not want to wager, that is not in gambling companies' interests, and it is not in our interests."

He stated that as soon as a great credibility was lost, the damage to a sport was "incalculable".

FA rules 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 knowledge, which he says 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 last the following spring.

"We need to get over to players the reputational danger to the game," he says. "Once confidence has actually been harmed it is difficult to get it back - mud sticks."

'Overwhelmingly legal'

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

The Gambling Commission was set up under the Gambling Act 2005 to manage commercial betting in Great Britain.

An ex-chief constable of West Midlands authorities, Mr Tofiluk has obligation for policing all wagering in the UK apart from spread wagering, 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 occasion.

"Such unfaithful has the prospective to undermine the stability of a sport, and it likewise harms the industrial interests of sports betting bodies and ."

The commission has established an in-house Sports Betting Intelligence Unit to get and disseminate details to sporting authorities, sports betting firms and policing authorities.

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

"We will signal sports betting of our issues, to assist prevent or curtail [prohibited] 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 just one prosecution, a 24-year-old male who was warned for cheating in relation to greyhound racing.

However, Mr Tofiluk says there are still 8 ongoing investigations, and that much useful information has likewise been passed to sports betting authorities.

He stated that where an examination 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 a number of those aiming to cheat the sports betting wagering market were knowledgeable about sports betting and sporting people, and about wagering operations and the movement of money.

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

Related web links

World sports betting Law Report
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ICC

Professional Players Federation
bet9ja.com
Professional Footballers' Association

The FA

Betfair

Sport & Markt

BLP

Gambling Commission

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