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Sport wagering industry looks to protect itself
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16 September 2010

By Bill Wilson

Business press reporter, BBC News

sports betting on sport is big service.

Sport England estimates the value of costs on sport-related gaming in England grew from ₤ 1.7 bn in 1985 to ₤ 2.8 bn in 2008.

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

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

But when the integrity of events are struck the gaming industry suffers, and profits are put under risk if can not wager with self-confidence.

And there can have been couple of higher-profile sport sports betting stories than those impacting cricket and snooker this year.

High-profile

As Sport & Markt's Gareth Moore observes: "Everyone speak about the sports betting 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 actually been questioned by police over spot-fixing allegations associating with a test versus England at Lord's last month.

Three of these players have actually stated they will also challenge the corruption charges mounted 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, but was banned recently for 6 months for failing to report the prohibited 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, among the UK's most significant online sporting exchanges.

"If the sport is perceived as truthful, straight and reasonable that benefits wagering firms because people will spend money sports betting with confidence," he says.

"If you take the Pakistan allegations, although unassociated to the UK managed sports betting market ... it is not really a positive story for sports betting in the UK.

"That is since the perception 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 sportspersons and sportswomen.

As Simon Taylor of the Professional Players' Federation explains: "The only people who can repair 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 not enough to merely have deterrents, sanctions and disciplinary procedures, but that the way to deal with potential concerns around gamers is also through education.

Mr Taylor says guidelines require to be described plainly to gamers with clear examples, and by individuals they respect.

"Through informing players about sports betting wagering you enhance stability which remains in everybody's interest," he includes.

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

'Brand damage'

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

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

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

"If it loses that then people do not want to wager, that is not in sports betting firms' 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 rules imply gamers are not enabled to bet on a competitors in which they are involved.

Mr Johnson says players have to be seen not to be capitalizing any inside understanding, which he says might trigger "brand name damage" to football and its competitors.

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

"We have to overcome to gamers the reputational risk to the game," he says. "Once self-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 regulation at the Gambling Commission, represents the "stick".

The Gambling Commission was established under the Gambling Act 2005 to control commercial sports betting in Great Britain.

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

"The overwhelming majority of sports betting wagering happening through UK operators is legal and fair," he states.

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

"Such unfaithful has the prospective to weaken the integrity of a sport, and it also damages the commercial interests of sports betting bodies and sports betting."

The commission has established an internal Sports Betting Intelligence Unit to receive and share information to sporting authorities, wagering companies and policing authorities.

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

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

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

'Vulnerabilities'

But in a two-and-a-half year period there has been just one 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 helpful details has likewise been passed to sports betting authorities.

He stated that where an examination by a sport governing body was quicker, and more expense 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 much of those aiming to cheat the sports betting wagering market were experienced about sports betting and sporting individuals, and about sports betting operations and the motion of money.
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"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
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Gambling Commission

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