Sport wagering industry looks to protect itself
16 September 2010
By Bill Wilson
Business press reporter, BBC News
Betting on sport is substantial business.
Sport England approximates the value of spending on sport-related gaming in England grew from ₤ 1.7 bn in 1985 to ₤ 2.8 bn in 2008.
Which 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 company Sport & Markt estimates the total international gambling market will be worth 263bn euros (₤ 220bn) by 2012, with much of that driven by internet and sports betting gaming.
But when the integrity of occasions are struck the betting industry suffers, and incomes are put under threat if consumers can not wager with 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 speak about the sports betting gambling market now.
"Not only is it a significant market in world business, it is one that is now on the front pages of papers."
Four Pakistan cricketers have actually 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 stated 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 accusations, however was banned recently for six months for stopping working to report the illegal technique to him to throw frames.
There are also 2 other continuing examinations - not related 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 fair that is great for wagering companies because people will spend cash wagering with self-confidence," he says.
"If you take the Pakistan allegations, although unassociated to the UK managed wagering industry ... it is not truly 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 have to take care 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 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 guys and women 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 merely have deterrents, sanctions and disciplinary treatments, however that the method to deal with possible problems around gamers is likewise through education.
Mr Taylor states guidelines require to be explained clearly to gamers with clear examples, and by individuals they respect.
"Through educating gamers about sports betting you reinforce stability which is in everyone's interest," he adds.
"If players are harder to corrupt then sport will be more difficult to corrupt."
'Brand damage'
Matt Johnson, head of regulatory legal guidance at the Football Association, concurs.
"Prevention is much better than treatment, and we also make a point of telling gamers 'you are going to be captured'."
"It is essential that sport is directly, and is seen to be directly," he includes.
"If it loses that then people do not wish to wager, that is not in sports betting firms' interests, and it is not in our interests."
He stated that when an excellent credibility was lost, the damage to a sport was "incalculable".
FA guidelines imply players are not permitted to wager on a competitors in which they are included.
Mr Johnson says gamers have actually to be seen not to be cashing in on any inside understanding, which he states might trigger "brand name damage" to football and its competitors.
So, even a 2nd Division player knocked out of the FA Cup in the autumn can not bank on a Manchester United v Chelsea cup final the following spring.
"We have to overcome to gamers the reputational danger to the video game," he states. "Once confidence has actually been harmed it is hard to get it back - mud sticks."
'Overwhelmingly legal'
If this represents the "carrot" approach, then perhaps Nick Tofiluk, director of regulation at the Gambling Commission, represents the "stick".
The Gambling Commission was set up under the Gambling Act 2005 to manage business gaming in Great Britain.
An ex-chief constable of West Midlands authorities, Mr Tofiluk has responsibility for policing all sports betting in the UK apart from spread sports betting, which is the remit of the FSA.
"The overwhelming bulk of sports betting occurring through UK operators is legal and reasonable," he says.
"But for some there is the temptation to ... corruptly hinder the outcome of a sporting event.
"Such unfaithful has the possible to weaken the stability of a sport, and it also damages the commercial interests of sports betting bodies and sports betting wagering."
The commission has established an internal Sports Betting Intelligence Unit to get and share info to sporting authorities, wagering companies and policing authorities.
"Since 2007 we have experienced a considerable insight into world of corrupt sports betting wagering," he states.
"We will inform sports betting of our issues, to help prevent or curtail [illegal] activity"
In May 2010, the commission also presented a personal telephone hotline for those with information or suspicions.
'Vulnerabilities'
But in a two-and-a-half year period there has actually been just one prosecution, a 24-year-old male who was warned for unfaithful in relation to greyhound racing.
However, Mr Tofiluk says there are still 8 ongoing examinations, which much helpful information has also been passed to sports betting authorities.
He said that where an examination by a sport governing body was quicker, and more expense reliable, then the commission would consider stopping a criminal examination "in favour of letting sports betting governing bodies take the lead".
Meanwhile, he states many of those wanting to cheat the sports betting industry were experienced about sports betting and sporting individuals, and about sports betting operations and the motion of cash.
"They look for 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
Betfair
Sport & Markt
BLP
Gambling Commission
