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Sport sports betting market seeks to protect itself

16 September 2010
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By Bill Wilson

Business reporter, BBC News

sports betting on sport is big organization.

Sport England estimates the worth 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 actually grown even more, with an estimated ₤ 1bn bet on the World Cup alone in the UK this summertime.

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

But when the integrity of events are struck the gaming market suffers, and revenues are put under hazard if clients can not bet with confidence.

And there can have been few higher-profile sport wagering 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 considerable market in world business, it is one that is now on the front pages of papers."

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

Three of these gamers have actually said they will also challenge the corruption charges mounted 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 accusations, however was banned recently for 6 months for stopping working to report the illegal approach to him to throw frames.

There are likewise two other continuing investigations - 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 honest, straight and fair that is good for wagering companies since individuals will invest cash sports betting with self-confidence," he states.

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

"That is due to the fact that the perception is that 'cricket is now something we may 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, the focus has to be on sportsmen and sportswomen.

As Simon Taylor of the Professional Players' Federation points out: "The only people who can fix 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 believes that it is insufficient to merely have deterrents, sanctions and disciplinary treatments, but that the method to tackle potential issues around gamers is likewise through education.

Mr Taylor says guidelines require to be explained clearly to gamers with clear examples, and by individuals they .

"Through informing gamers about sports betting you enhance integrity which is in everybody's interest," he adds.

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

'Brand damage'

Matt Johnson, head of regulatory 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 straight, and is seen to be straight," he adds.

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

He said that as soon as an excellent reputation 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.
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Mr Johnson says players have to be seen not to be cashing in on any inside understanding, which he says could trigger "brand name damage" to football and its competitions.

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

"We need to overcome to gamers the reputational threat to the game," he says. "Once self-confidence has been damaged it is difficult to get it back - mud sticks."

'Overwhelmingly legal'

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

The Gambling Commission was set up under the Gambling Act 2005 to regulate commercial sports betting in Great Britain.

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

"The overwhelming 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 event.

"Such unfaithful has the possible to undermine the integrity of a sport, and it likewise damages the industrial interests of sports betting bodies and sports betting wagering."

The commission has actually developed an in-house Sports Betting Intelligence Unit to get and distribute details to sporting authorities, wagering firms and policing authorities.

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

"We will signal sports betting of our concerns, to help prevent or cut [prohibited] activity"

In May 2010, the commission also introduced a confidential 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 man who was cautioned for unfaithful in relation to greyhound racing.

However, Mr Tofiluk says there are still eight continuous investigations, which much useful info has actually likewise 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 consider ceasing a criminal examination "in favour of letting sports betting governing bodies take the lead".

Meanwhile, he states much of those seeking to cheat the sports betting industry were experienced about sports betting and sporting individuals, and about wagering operations and the movement of cash.

"They look for the vulnerabilities of these to assist in their business."

Related web links

World sports betting Law Report

ICC

Professional Players Federation

Professional Footballers' Association

The FA

Betfair

Sport & Markt

BLP
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Gambling Commission

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