Sport Betting Industry Seeks To Protect Itself

Sport sports betting market seeks to protect itself

16 September 2010

By Bill Wilson

Business press reporter, BBC News

sports betting on sport is substantial business.

Sport England approximates the worth 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 season.

Meanwhile, German research company Sport & Markt estimates the total global gambling 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 gambling market suffers, and earnings are put under risk if consumers can not bet with self-confidence.

And there can have been few higher-profile sport 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 gambling market now.

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

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

Three of these gamers have said 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 prohibited last week for 6 months for stopping working to report the illegal approach to him to toss frames.

There are also two other continuing investigations - 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 honest, straight and fair that benefits sports betting firms since individuals will spend money wagering with confidence," he states.

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

"That is due to the fact that the understanding is that 'cricket is now something we might have to beware about'."

'Education'

So what can be done to prevent future scandals?

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

As Simon Taylor of the Professional Players' Federation points out: "The only individuals who can fix a match are the competitors or the referee."

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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 insufficient to simply have deterrents, sanctions and disciplinary procedures, but that the way to take on prospective issues around players is also through education.

Mr Taylor states guidelines require to be explained plainly to players with clear examples, and by people they appreciate.

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

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

'Brand damage'

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

"Prevention is much better than cure, and we likewise 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 includes.

"If it loses that then people don't desire to bet, that is not in gambling 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 "incalculable".

FA guidelines suggest players are not enabled to wager on a competitors in which they are involved.

Mr Johnson states gamers have actually to be seen not to be capitalizing any inside understanding, which he says could cause "brand name damage" to football and its competitors.

So, even a Second Division player 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 danger to the video game," he says. "Once self-confidence has actually been damaged it is tough to get it back - mud sticks."

'Overwhelmingly legal'

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

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

An ex-chief constable of West Midlands authorities, Mr Tofiluk has responsibility 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 taking location through UK operators is legal and reasonable," he says.

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

"Such cheating has the potential to weaken the integrity of a sport, and it also damages the business interests of sports betting bodies and sports betting."

The commission has developed an internal Sports Betting Intelligence Unit to get and disseminate details to sporting authorities, sports betting firms and policing authorities.

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

"We will signal sports betting of our issues, to help prevent or curtail [illegal] 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 actually been just one prosecution, a 24-year-old male who was cautioned for cheating in relation to greyhound racing.

However, Mr Tofiluk says there are still 8 continuous investigations, and that much helpful details has actually likewise been passed to sports betting authorities.

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

Meanwhile, he states much of those looking to cheat the sports betting wagering market were knowledgeable about sports betting and sporting individuals, and about betting operations and the movement of money.