Sport Betting Industry Looks To Protect Itself

Sport sports betting market seeks to secure itself

16 September 2010

By Bill Wilson

Business press reporter, BBC News

Betting on sport is big company.

Sport England approximates the value of costs on sport-related gambling in England grew from ₤ 1.7 bn in 1985 to ₤ 2.8 bn in 2008.

Which figure is most likely to have grown even more, with an approximated ₤ 1bn bet on the World Cup alone in the UK this summer season.

Meanwhile, German research company Sport & Markt approximates the general global 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 stability of events are struck the sports betting market suffers, and incomes are put under risk if customers can not wager with confidence.

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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 discuss the sports betting gambling market now.

"Not only is it a substantial market in world service, it is one that is now on the front pages of papers."

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

Three of these players have actually stated they will also challenge the corruption charges installed 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 claims, however was banned recently for 6 months for stopping working to report the prohibited technique to him to throw frames.

There are likewise 2 other continuing examinations - not related to Mr Higgins - into snooker.

'Honest'

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

"If the sport is perceived as truthful, straight and reasonable that benefits sports betting firms due to the fact that people will invest cash wagering with confidence," he states.

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

"That is due to the fact that the perception is that 'cricket is now something we may need 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 gambling, the focus needs to be on sportsmen and sportswomen.

As Simon Taylor of the Professional Players' Federation mentions: "The only individuals who can fix a match are the competitors 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 insufficient to merely have deterrents, sanctions and disciplinary procedures, but that the way to tackle possible problems around players is also through education.

Mr Taylor says guidelines need to be described plainly to gamers with clear examples, and by individuals they respect.

"Through educating players about sports betting you strengthen stability which remains in everybody'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 advice at the Football Association, concurs.

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

"It is imperative 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 sports betting firms' interests, and it is not in our interests."

He said that as soon as an excellent reputation was lost, the damage to a sport was "enormous".

FA guidelines imply gamers are not permitted to wager on a competition in which they are involved.

Mr Johnson says players have actually to be seen not to be capitalizing any inside understanding, which he states could cause "brand name damage" to football and its competitions.

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

"We have to get over to gamers the reputational threat to the video game," he says. "Once confidence has been damaged it is tough to get it back - mud sticks."

'Overwhelmingly legal'

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

The Gambling Commission was established under the Gambling Act 2005 to control business sports 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 sports betting, which is the remit of the FSA.

"The overwhelming majority of sports betting wagering happening through UK operators is legal and fair," he says.

"But for some there is the temptation to ... corruptly interfere with the result of a sporting occasion.

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

The commission has actually developed an in-house Sports Betting Intelligence Unit to receive and disseminate info to sporting authorities, wagering firms and policing authorities.

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

"We will signal sports betting of our issues, to help avoid or cut [illegal] activity"

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

'Vulnerabilities'

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

However, Mr Tofiluk says there are still 8 ongoing examinations, which much helpful info has actually also been passed to sports betting authorities.

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

Meanwhile, he states much of those seeking to cheat the sports betting wagering industry were educated about sports betting and sporting individuals, and about betting operations and the movement of money.