Sport betting market wants to protect itself

16 September 2010

By Bill Wilson

Business press reporter, BBC News

sports betting on sport is substantial service.

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

And that figure is likely to have actually grown further, with an estimated ₤ 1bn bet on the World Cup alone in the UK this summertime.

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

But when the stability of events are struck the sports betting industry suffers, and earnings are put under danger if customers 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 talks about the sports betting market now.

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

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

Three of these gamers 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 champion John Higgins was cleared of match-fixing allegations, however was prohibited recently for six months for stopping working to report the illegal method to him to toss frames.

There are likewise 2 other continuing examinations - unrelated 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 viewed as truthful, straight and reasonable that benefits betting companies since individuals will spend cash wagering with self-confidence," he states.

"If you take the Pakistan allegations, although unrelated to the UK regulated wagering market ... it is not actually a positive story for wagering in the UK.

"That is because the perception is that 'cricket is now something we might need to be mindful about'."

'Education'

So what can be done to avoid future scandals?

According to professionals 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 fix a match are the rivals or the referee."

His organisation represents men and ladies in 15 sports betting in the UK, being an umbrella organisation for all gamer organisations, such as the Professional Footballers' Association.

He believes that it is inadequate to simply have deterrents, sanctions and disciplinary treatments, but that the method to deal with prospective problems around gamers is also through education.

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

"Through educating gamers about sports betting wagering you reinforce stability which remains in everyone's interest," he includes.

"If players are harder to corrupt then sport will be harder to corrupt."

'Brand damage'

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

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

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

"If it loses that then individuals don't wish to wager, that is not in sports betting companies' interests, and it is not in our interests."

He stated that when an excellent reputation was lost, the damage to a sport was "enormous".

FA rules suggest players are not permitted to bet on a competition in which they are involved.

Mr Johnson states players need to be seen not to be cashing in on any inside understanding, which he says could 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 players the reputational danger to the game," he says. "Once self-confidence has been harmed it is difficult to get it back - mud sticks."

'Overwhelmingly legal'

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

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

An ex-chief constable of West Midlands cops, 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 bulk of sports betting occurring through UK operators is legal and reasonable," he states.

"But for some there is the temptation to ... corruptly disrupt the result of a sporting event.

"Such cheating has the possible to weaken the stability of a sport, and it likewise harms the industrial interests of sports betting bodies and sports betting wagering."

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

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

"We will notify sports betting of our concerns, to help prevent or curtail [unlawful] activity"

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

'Vulnerabilities'

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

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

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

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

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

Related internet 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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