Sport Betting Industry Wants To Protect Itself

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Sport sports betting industry seeks to safeguard itself

16 September 2010

By Bill Wilson

Business reporter, BBC News

sports betting on sport is substantial business.

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

And that figure is most 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 total worldwide gambling market will deserve 263bn euros (₤ 220bn) by 2012, with much of that driven by web and sports gaming.

But when the integrity of occasions are struck the gaming industry suffers, and revenues are put under threat if consumers can not wager 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 discuss the sports betting gambling market now.

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

Four Pakistan cricketers have actually been questioned by police over spot-fixing accusations associating with a test versus 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 champion John Higgins was cleared of match-fixing allegations, but was banned last week for six months for failing to report the prohibited technique to him to throw frames.

There are also two other continuing investigations - not associated to Mr Higgins - into snooker.

'Honest'

David O'Reilly is legal counsel for Betfair, among the UK's greatest online sporting exchanges.

"If the sport is perceived as sincere, straight and reasonable that benefits sports betting companies since individuals will spend cash sports betting with confidence," he states.

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

"That is because the understanding is that 'cricket is now something we might have to beware 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, the focus needs to be on sportspersons and sportswomen.

As Simon Taylor of the Professional Players' Federation explains: "The only individuals who can repair a match are the rivals or the referee."

His organisation represents men 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 not enough to simply have deterrents, sanctions and disciplinary treatments, but that the way to deal with potential concerns around gamers is also through education.

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

"Through educating gamers about sports betting wagering you strengthen stability which remains 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, concurs.

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

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

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

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

FA guidelines suggest players are not allowed to wager on a competition in which they are included.

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

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 need to get over to players the reputational threat to the game," he states. "Once confidence has actually been damaged it is difficult to get it back - mud sticks."

'Overwhelmingly legal'

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

The Gambling Commission was established under the Gambling Act 2005 to regulate 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 majority of sports betting wagering happening through UK operators is legal and reasonable," he says.

"But for some there is the temptation to ... corruptly hinder the result of a sporting occasion.

"Such cheating has the prospective to undermine the integrity of a sport, and it likewise damages the commercial 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 info to sporting authorities, wagering firms and policing authorities.

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

"We will inform sports betting of our issues, to assist prevent or curtail [prohibited] activity"

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

'Vulnerabilities'

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

However, Mr Tofiluk says there are still eight ongoing examinations, which much useful details has actually also been passed to sports betting authorities.

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

Meanwhile, he says numerous of those wanting to cheat the sports betting wagering industry were knowledgeable about sports betting and sporting individuals, and about sports betting operations and the movement of money.

"They seek out the vulnerabilities of these to help in their business."