Sport Betting Industry Looks To Protect Itself

Sport wagering industry wants to safeguard itself

16 September 2010

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By Bill Wilson

Business reporter, BBC News

sports betting on sport is huge business.

Sport England approximates the value 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 most likely to have grown even more, with an approximated ₤ 1bn bet on the World Cup alone in the UK this summertime.

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

But when the stability of events are struck the gaming industry suffers, and earnings are put under threat if consumers 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 gambling market now.

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

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

Three of these players 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 champ John Higgins was cleared of match-fixing allegations, however was banned last week for 6 months for stopping working to report the illegal approach to him to throw frames.

There are likewise 2 other continuing examinations - 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 perceived as truthful, straight and fair that benefits sports betting firms since people will spend money sports betting with self-confidence," he says.

"If you take the Pakistan claims, although unrelated to the UK managed sports betting industry ... it is not actually a positive story for sports betting in the UK.

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

'Education'

So what can be done to prevent future scandals?

According to specialists at a World sports betting Law Report conference into sports betting gambling, the focus needs to be on sportspersons and sportswomen.

As Simon Taylor of the Professional Players' Federation explains: "The only people 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 gamer organisations, such as the Professional Footballers' Association.

He thinks that it is inadequate to merely have deterrents, sanctions and disciplinary procedures, however that the way to tackle prospective issues around players is likewise through education.

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

"Through informing gamers about sports betting wagering you enhance stability and that remains in everyone's interest," he adds.

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

'Brand damage'

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

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

"It is necessary that sport is straight, and is seen to be straight," he adds.

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

He said that once a good track record was lost, the damage to a sport was "enormous".

FA guidelines mean players are not permitted to bank on a competition in which they are included.

Mr Johnson says players have actually to be seen not to be cashing in on any inside knowledge, which he states could cause "brand name damage" to football and its competitions.

So, even a Second 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 overcome to gamers the reputational risk to the game," he states. "Once confidence has actually been damaged 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 control business gambling in Great Britain.

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

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

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

"Such unfaithful has the potential to undermine the integrity of a sport, and it also hurts the business interests of sports betting bodies and sports betting wagering."

The commission has established an in-house Sports Betting Intelligence Unit to receive and distribute details to sporting authorities, sports betting companies and policing authorities.

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

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

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

'Vulnerabilities'

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

However, Mr Tofiluk says there are still eight ongoing examinations, and that much beneficial information has actually likewise been passed to sports betting authorities.

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

Meanwhile, he states a lot of those looking to cheat the sports betting industry were well-informed about sports betting and sporting people, and about wagering operations and the movement of money.

"They seek out the vulnerabilities of these to assist in their enterprises."