Sport Betting Industry Seeks To Protect Itself

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Sport wagering industry wants to protect itself

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16 September 2010

By Bill Wilson

Business press reporter, BBC News

sports betting on sport is substantial company.

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 grown even more, with an estimated ₤ 1bn bet on the World Cup alone in the UK this summertime.

Meanwhile, German research firm Sport & Markt estimates the general worldwide 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 hit the gaming market suffers, and incomes are put under risk if consumers can not wager with confidence.

And there can have been few higher-profile sport wagering stories than those impacting 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 service, it is one that is now on the front pages of newspapers."

Four Pakistan cricketers have been questioned by authorities over spot-fixing allegations relating to a test against England at Lord's last month.

Three of these gamers have actually stated 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 claims, however was banned last week for 6 months for stopping working to report the illegal technique 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 biggest online sporting exchanges.

"If the sport is viewed as truthful, straight and reasonable that is great for betting firms due to the fact that individuals will invest cash wagering with confidence," he states.

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

"That is since the perception is that 'cricket is now something we might have to be careful 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, the focus has to be on sportsmen and sportswomen.

As Simon Taylor of the Professional Players' Federation mentions: "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 believes that it is insufficient to merely have deterrents, sanctions and disciplinary procedures, however that the way to tackle potential issues around players is also through education.

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

"Through educating gamers about sports betting wagering you enhance integrity which remains in everybody's interest," he includes.

"If gamers 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, concurs.

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

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

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

He said that once a great credibility was lost, the damage to a sport was "enormous".

FA guidelines imply gamers are not permitted to bank on a competition in which they are involved.

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

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 have to overcome to players the reputational risk to the game," he says. "Once confidence has actually been harmed it is tough to get it back - mud sticks."

'Overwhelmingly legal'

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

The Gambling Commission was set up under the Gambling Act 2005 to control commercial gambling in Great Britain.

An ex-chief constable of West Midlands police, 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 reasonable," he says.

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

"Such unfaithful has the possible 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 established an in-house Sports Betting Intelligence Unit to get and disseminate info to sporting authorities, sports betting firms and policing authorities.

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

"We will signal sports betting of our issues, to help prevent or reduce [prohibited] activity"

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

'Vulnerabilities'

But in a two-and-a-half year duration there has been simply one prosecution, a 24-year-old man who was cautioned for cheating in relation to greyhound racing.

However, Mr Tofiluk states there are still 8 continuous examinations, and that much helpful information has likewise been passed to sports betting authorities.

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

Meanwhile, he states a number of those looking to cheat the sports betting wagering market were experienced about sports betting and sporting individuals, and about wagering operations and the motion of money.

"They look for the vulnerabilities of these to help in their enterprises."