Sport sports betting market seeks to safeguard itself

16 September 2010

By Bill Wilson

Business press reporter, BBC News

sports betting on sport is substantial organization.

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

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

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

But when the integrity of occasions are struck the gaming market suffers, and revenues are put under danger if customers can not wager with self-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 talks about the sports betting gambling market now.

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

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

Three of these gamers have said they will likewise challenge the corruption charges installed 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 claims, however was banned recently for six months for failing to report the prohibited method to him to toss frames.

There are also 2 other continuing examinations - unrelated 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 perceived as sincere, straight and reasonable that benefits wagering companies since people will invest money wagering with self-confidence," he says.

"If you take the Pakistan accusations, although unassociated to the UK regulated wagering market ... it is not actually a positive story for sports betting in the UK.

"That is because the perception is that 'cricket is now something we might have to take care 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 has to be on sportspersons and sportswomen.

As Simon Taylor of the Professional Players' Federation explains: "The only people who can repair a match are the rivals 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 treatments, however that the method to deal with potential issues around players is also through education.

Mr Taylor states rules require to be discussed plainly to gamers with clear examples, and by individuals they respect.

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

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

'Brand damage'

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

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

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

"If it loses that then individuals do not want to bet, that is not in gaming firms' interests, and it is not in our interests."

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

FA rules imply players are not permitted to bank on a competition in which they are involved.

Mr Johnson says gamers have actually to be seen not to be cashing in on any inside understanding, which he says might cause "brand damage" to football and its competitors.

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

"We have to get over to gamers the reputational risk to the game," he says. "Once self-confidence has been harmed it is hard to get it back - mud sticks."

'Overwhelmingly legal'

If this represents the "carrot" method, 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 manage industrial gambling in Great Britain.

An ex-chief constable of West Midlands police, 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 frustrating bulk of sports betting wagering occurring through UK operators is legal and fair," he says.

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

"Such unfaithful has the possible to weaken the integrity of a sport, and it likewise hurts the commercial interests of sports betting bodies and sports betting wagering."

The commission has actually developed an internal Sports Betting Intelligence Unit to get and disseminate information to sporting authorities, wagering firms and policing authorities.

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

"We will notify sports betting of our issues, to help avoid or reduce [prohibited] activity"

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

'Vulnerabilities'

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

However, Mr Tofiluk says there are still 8 continuous investigations, and that much useful details has actually likewise been passed to sports betting authorities.

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

Meanwhile, he states a lot of those seeking to cheat the sports betting market were educated about sports betting and sporting individuals, and about sports betting operations and the movement of cash.

"They look for 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