Sport sports betting industry seeks to protect itself

16 September 2010

By Bill Wilson

Business press reporter, BBC News

sports betting on sport is substantial business.

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

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

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

But when the stability of occasions are hit the gambling industry suffers, and profits are put under risk if consumers can not wager with self-confidence.

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

Four Pakistan cricketers have been questioned by authorities over spot-fixing accusations associating with a test versus England at Lord's last month.

Three of these gamers have stated 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 accusations, but was banned last week for six months for stopping working to report the illegal technique to him to toss frames.

There are also 2 other continuing examinations - not related to Mr Higgins - into snooker.

'Honest'
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David O'Reilly is legal counsel for Betfair, among the UK's biggest online sporting exchanges.
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"If the sport is viewed as sincere, straight and fair that is good for wagering firms due to the fact that people will invest cash wagering with self-confidence," he states.

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

"That is because the understanding is that 'cricket is now something we may need 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 needs to be on sportspersons and sportswomen.

As Simon Taylor of the Professional Players' Federation points out: "The only individuals 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 inadequate to simply have deterrents, sanctions and disciplinary treatments, but that the way to tackle prospective concerns around gamers is also through education.

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

"Through informing players about sports betting you reinforce integrity which remains in everybody's interest," he adds.

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

'Brand damage'

Matt Johnson, head of regulative legal guidance at the Football Association, concurs.

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

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

"If it loses that then people don't desire to bet, that is not in gambling companies' interests, and it is not in our interests."

He said that once a good reputation was lost, the damage to a sport was "incalculable".
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FA guidelines imply gamers are not permitted to bet on a competition in which they are involved.

Mr Johnson states gamers have to be seen not to be cashing in on any inside understanding, which he says might trigger "brand damage" to football and its competitions.

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

"We need to get over to gamers the reputational risk to the game," he states. "Once self-confidence has been harmed it is hard to get it back - mud sticks."

'Overwhelmingly legal'

If this represents the "carrot" method, 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 manage commercial gaming in Great Britain.

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

"The frustrating bulk of sports betting wagering occurring through UK operators is legal and fair," he says.

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

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

The commission has developed an in-house Sports Betting Intelligence Unit to get and disseminate information to sporting authorities, sports betting firms and policing authorities.

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

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

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

'Vulnerabilities'

But in a two-and-a-half year duration there has been simply 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 investigations, and that 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 think about ceasing a criminal investigation "in favour of letting sports betting governing bodies take the lead".

Meanwhile, he says a lot of those seeking to cheat the sports betting industry were educated about sports betting and sporting individuals, and about sports betting operations and the movement of cash.
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"They look for out the of these to assist in their enterprises."
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Related internet links

World sports betting Law Report

ICC

Professional Players Federation

Professional Footballers' Association

The FA

Betfair

Sport & Markt

BLP

Gambling Commission