Sport wagering industry aims to safeguard itself

16 September 2010

By Bill Wilson

Business press reporter, BBC News

Betting on sport is huge business.

Sport England approximates the worth of spending on sport-related betting in England grew from ₤ 1.7 bn in 1985 to ₤ 2.8 bn in 2008.

Which figure is likely to have actually grown even more, with an approximated ₤ 1bn bet on the World Cup alone in the UK this summer season.
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Meanwhile, German research study company Sport & Markt approximates the total international gambling market will deserve 263bn euros (₤ 220bn) by 2012, with much of that driven by web and sports betting gambling.

But when the stability of occasions are hit the betting industry suffers, and profits are put under threat if clients can not bet with self-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 speak about the sports betting market now.

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

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

Three of these gamers have actually said they will likewise challenge the corruption charges mounted against the trio by the sport governing body the International Cricket Council.

Meanwhile, three-times snooker world champion John Higgins was cleared of match-fixing accusations, however was banned last week for 6 months for stopping working to report the unlawful method to him to throw frames.

There are likewise 2 other continuing investigations - not associated to Mr Higgins - into snooker.

'Honest'

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

"If the sport is viewed as honest, straight and reasonable that is excellent for sports betting firms since people will invest cash betting with confidence," he states.
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"If you take the Pakistan accusations, although unassociated to the UK regulated sports betting industry ... it is not truly a positive story for betting in the UK.

"That is since the understanding is that 'cricket is now something we might have to beware about'."

'Education'

So what can be done to prevent future scandals?

According to professionals 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 explains: "The only individuals who can repair 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 gamer organisations, such as the Professional Footballers' Association.

He thinks that it is inadequate to simply have deterrents, and disciplinary procedures, but that the way to deal with potential issues around gamers is also through education.

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

"Through informing players about sports betting wagering you strengthen stability and that remains in everybody's interest," he adds.

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

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

"Prevention is much better than treatment, and we likewise make a point of telling 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 individuals don't wish to bet, that is not in gambling firms' interests, and it is not in our interests."

He stated that once an excellent credibility was lost, the damage to a sport was "incalculable".

FA rules mean gamers are not allowed to bet on a competition in which they are involved.

Mr Johnson says gamers need to be seen not to be cashing in on any inside knowledge, which he says might trigger "brand 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 need to overcome to players the reputational danger to the video game," he says. "Once self-confidence has actually been damaged it is difficult to get it back - mud sticks."

'Overwhelmingly legal'

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

The Gambling Commission was set up under the Gambling Act 2005 to control business gambling in Great Britain.

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

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

"But for some there is the temptation to ... corruptly hinder the outcome of a sporting event.
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"Such cheating has the possible to weaken the integrity of a sport, and it likewise damages the commercial interests of sports betting bodies and sports betting."

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

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

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

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

'Vulnerabilities'

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

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

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

Meanwhile, he says a number of those looking to cheat the sports betting wagering industry were experienced about sports betting and sporting individuals, and about betting operations and the movement of cash.

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

Related internet links

World sports betting Law Report

ICC

Professional Players Federation

Professional Footballers' Association

The FA
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Betfair

Sport & Markt

BLP

Gambling Commission
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