Sport betting industry looks to secure itself

16 September 2010

By Bill Wilson

Business reporter, BBC News

sports betting on sport is big company.

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

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

But when the integrity of events are struck the betting market suffers, and profits are put under threat if clients can not bet with self-confidence.

And there can have been couple of 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 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 claims associating with a test versus England at Lord's last month.

Three of these gamers have actually 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, but was banned recently for 6 months for stopping working to report the illegal technique to him to toss frames.

There are likewise 2 other continuing investigations - not associated to Mr Higgins - into snooker.

'Honest'

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

"If the sport is perceived as honest, straight and reasonable that is great for sports betting firms due to the fact that individuals will spend cash wagering with self-confidence," he states.

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

"That is due to the fact that the perception is that 'cricket is now something we might need to be cautious about'."

'Education'

So what can be done to avoid future scandals?

According to experts at a World sports betting Law Report conference into sports betting gambling, the focus has to be on sportsmen and sportswomen.

As Simon Taylor of the Professional Players' Federation points out: "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 gamer organisations, such as the Professional Footballers' Association.

He thinks that it is inadequate to simply have deterrents, sanctions and disciplinary treatments, but that the way to tackle possible problems around players is also through education.

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

"Through informing gamers about sports betting you reinforce stability which remains in everyone's interest," he includes.

"If players are harder 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 much better than remedy, and we also make a point of telling gamers 'you are going to be caught'."

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

"If it loses that then individuals do not wish to wager, that is not in sports betting firms' interests, and it is not in our interests."

He stated that as soon as an excellent reputation was lost, the damage to a sport was "enormous".

FA rules suggest players are not enabled to bank on a competitors in which they are included.

Mr Johnson states gamers 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 competitors.

So, even a 2nd Division gamer knocked out of the FA Cup in the autumn 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 actually been harmed it is difficult to get it back - mud sticks."

'Overwhelmingly legal'

If this represents the "carrot" approach, 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 industrial gambling 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 happening through UK operators is legal and fair," he states.

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

"Such unfaithful has the prospective to weaken the stability of a sport, and it likewise harms the industrial interests of sports betting bodies and sports betting wagering."

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

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

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

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

'Vulnerabilities'

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

However, Mr Tofiluk states there are still eight continuous examinations, which much useful information has likewise been passed to sports betting authorities.

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

Meanwhile, he says numerous of those aiming to cheat the sports betting market were knowledgeable about sports betting and sporting people, and about wagering operations and the motion of money.

"They look for out 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

Gambling Commission

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