Sport Betting Industry Seeks To Protect Itself

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Sport sports betting market seeks to protect itself

16 September 2010

By Bill Wilson

Business reporter, BBC News

Betting on sport is huge company.

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

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

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

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

And there can have been few 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 gambling market now.

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

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

Three of these players 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 champion John Higgins was cleared of match-fixing allegations, but was banned recently for six months for stopping working to report the illegal method to him to toss frames.

There are likewise two other continuing examinations - not associated 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 perceived as sincere, straight and reasonable that is good for sports betting companies because individuals will invest cash betting with self-confidence," he says.

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

"That is because the perception is that 'cricket is now something we might have to beware about'."

'Education'

So what can be done to avoid future scandals?

According to specialists 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 explains: "The only individuals who can fix a match are the rivals or the referee."

His organisation represents men 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 insufficient to simply have deterrents, sanctions and disciplinary procedures, however that the method to take on possible issues around players is also through education.

Mr Taylor states rules need to be explained clearly to gamers with clear examples, and by people they respect.

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

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

'Brand damage'

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

"Prevention is much better than treatment, and we also make a point of informing players 'you are going to be caught'."

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

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

He stated that as soon as a good track record was lost, the damage to a sport was "incalculable".

FA guidelines mean players are not permitted to bank on a competition in which they are involved.

Mr Johnson states gamers need to be seen not to be capitalizing any inside knowledge, which he states could trigger "brand name damage" to football and its competitors.

So, even a 2nd Division player knocked out of the FA Cup in the fall can not bet on a Manchester United v Chelsea cup final the following spring.

"We need to overcome to gamers the reputational danger to the game," he says. "Once self-confidence has been damaged it is difficult to get it back - mud sticks."

'Overwhelmingly legal'

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

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

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

"The frustrating majority of sports betting happening through UK operators is legal and reasonable," he states.

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

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

The commission has actually developed an in-house Sports Betting Intelligence Unit to receive and disseminate details to sporting authorities, wagering companies and policing authorities.

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

"We will signal sports betting of our concerns, to help avoid or cut [prohibited] activity"

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

'Vulnerabilities'

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

However, Mr Tofiluk states there are still 8 ongoing examinations, and that much beneficial information has actually also been passed to sports betting authorities.

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

Meanwhile, he says much of those wanting to cheat the sports betting wagering market were educated about sports betting and sporting people, and about sports betting operations and the movement of money.

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