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Sport sports betting industry looks to safeguard itself

16 September 2010
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By Bill Wilson

Business press reporter, BBC News

sports betting on sport is big company.
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Sport England approximates the worth of costs on sport-related sports betting in England grew from ₤ 1.7 bn in 1985 to ₤ 2.8 bn in 2008.

Which 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.

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

But when the integrity of events are struck the gaming market suffers, and earnings are put under risk if customers can not wager with self-confidence.

And there can have been few higher-profile sport sports betting 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 just is it a significant market in world company, it is one that is now on the front pages of papers."

Four Pakistan cricketers have actually been questioned by cops over spot-fixing allegations associating with a test versus England at Lord's last month.

Three of these players have actually stated 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 claims, but was banned recently for 6 months for failing to report the prohibited method to him to toss frames.

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

'Honest'

David O'Reilly is legal counsel for Betfair, one of the UK's biggest online sporting exchanges.
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"If the sport is perceived as truthful, straight and reasonable that benefits wagering firms because people will invest money wagering with self-confidence," he states.

"If you take the Pakistan claims, although unassociated to the UK managed sports betting industry ... it is not actually a favorable story for sports betting in the UK.

"That is because the perception is that 'cricket is now something we may 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, the focus has to be on sportsmen and sportswomen.

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

His organisation represents males and ladies in 15 sports betting in the UK, being an umbrella organisation for all gamer 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 potential concerns around players is also through education.

Mr Taylor states rules require to be explained plainly to gamers with clear examples, and by individuals they appreciate.

"Through informing gamers about sports betting wagering you enhance integrity which remains in everyone's interest," he adds.

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

'Brand damage'

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

"Prevention is much better than cure, 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 directly," he includes.

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

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

FA guidelines imply players are not permitted to bank on a competition in which they are included.

Mr says players have actually to be seen not to be cashing in on any inside understanding, which he says could cause "brand damage" to football and its competitions.

So, even a 2nd 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 have to overcome to players the reputational risk to the game," he states. "Once confidence has been damaged it is difficult 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 regulate business sports betting in Great Britain.

An ex-chief constable of West Midlands authorities, Mr Tofiluk has duty for policing all sports betting in the UK apart from spread sports betting, which is the remit of the FSA.

"The frustrating majority of sports betting taking place through UK operators is legal and reasonable," he states.

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

"Such cheating has the prospective to weaken the stability of a sport, and it also hurts the business interests of sports betting bodies and sports betting."

The commission has established an in-house Sports Betting Intelligence Unit to receive and share information to sporting authorities, sports betting firms and policing authorities.

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

"We will notify sports betting of our concerns, to assist avoid or cut [unlawful] activity"

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

'Vulnerabilities'
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But in a two-and-a-half year duration there has been just one prosecution, a 24-year-old male who was cautioned for unfaithful in relation to greyhound racing.

However, Mr Tofiluk states there are still 8 continuous investigations, and that much helpful info has also been passed to sports betting authorities.

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

Meanwhile, he states a lot of those aiming to cheat the sports betting market were educated about sports betting and sporting people, and about wagering operations and the motion of money.

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

Related web links

World sports betting Law Report

ICC

Professional Players Federation

Professional Footballers' Association

The FA

Betfair

Sport & Markt

BLP

Gambling Commission
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