Sport Betting Industry Aims To Protect Itself

Sport sports betting industry wants 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 sports betting in England grew from ₤ 1.7 bn in 1985 to ₤ 2.8 bn in 2008.

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

Meanwhile, German research company Sport & Markt approximates the general worldwide sports betting market will be worth 263bn euros (₤ 220bn) by 2012, with much of that driven by internet and sports betting gambling.

But when the integrity of events are struck the sports betting market suffers, and earnings are put under risk if consumers can not wager with confidence.

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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 only is it a substantial market in world service, it is one that is now on the front pages of newspapers."

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

Three of these players have actually said 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 champion John Higgins was cleared of match-fixing accusations, but was banned recently for 6 months for failing to report the illegal approach to him to throw frames.

There are also two 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 perceived as truthful, straight and reasonable that benefits wagering companies since people will spend money wagering with confidence," he says.

"If you take the Pakistan accusations, although unrelated to the UK managed wagering industry ... it is not truly a favorable story for sports betting in the UK.

"That is since the understanding 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, the focus needs to be on sportsmen and sportswomen.

As Simon Taylor of the Professional Players' Federation points out: "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 inadequate to simply have deterrents, sanctions and disciplinary treatments, but that the way to take on potential issues around players is likewise through education.

Mr Taylor states guidelines need to be explained plainly to players with clear examples, and by people they respect.

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

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

'Brand damage'

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

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

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

He stated that when a good credibility was lost, the damage to a sport was "incalculable".

FA guidelines imply gamers are not allowed to bet 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 says could trigger "brand damage" to football and its competitions.

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

"We have to get over to players the reputational danger to the game," he says. "Once confidence has been harmed it is tough to get it back - mud sticks."

'Overwhelmingly legal'

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

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

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

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

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

"Such cheating has the potential to undermine the stability of a sport, and it also harms the industrial interests of sports betting bodies and sports betting."

The commission has established an internal Sports Betting Intelligence Unit to receive and distribute info to sporting authorities, sports betting firms and policing authorities.

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

"We will alert sports betting of our concerns, to assist prevent or reduce [illegal] 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 just one prosecution, a 24-year-old guy who was warned for unfaithful in relation to greyhound racing.

However, Mr Tofiluk states there are still 8 continuous investigations, which much helpful information has actually likewise 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 stopping a criminal examination "in favour of letting sports betting governing bodies take the lead".

Meanwhile, he says a lot of those aiming 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 help in their enterprises."