Sport Betting Industry Looks To Protect Itself

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Sport sports betting industry looks to protect itself

16 September 2010

By Bill Wilson

Business press reporter, BBC News

sports betting on sport is huge company.

Sport England approximates the worth of spending 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 further, with an estimated ₤ 1bn bet on the World Cup alone in the UK this summertime.

Meanwhile, German research 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 stability of events are hit the gambling market suffers, and profits are put under danger if consumers can not bet with confidence.

And there can have been few 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 market now.

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

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

Three of these gamers have actually said they will also 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 prohibited last week for six months for stopping working to report the illegal approach to him to toss frames.

There are likewise 2 other continuing examinations - unrelated 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 benefits wagering companies since individuals will spend money wagering with confidence," he states.

"If you take the Pakistan accusations, although unassociated to the UK managed sports betting market ... it is not really a favorable story for wagering in the UK.

"That is due to the fact that the understanding is that 'cricket is now something we may need to be mindful about'."

'Education'

So what can be done to avoid future scandals?

According to professionals 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 points out: "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 player organisations, such as the Professional Footballers' Association.

He believes that it is insufficient to simply have deterrents, sanctions and disciplinary treatments, but that the method to take on potential concerns around gamers is likewise through education.

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

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

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

'Brand damage'

Matt Johnson, head of regulatory legal advice at the Football Association, concurs.

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

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

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

He said that as soon as a good reputation was lost, the damage to a sport was "enormous".

FA guidelines indicate players are not enabled to bank on a competitors in which they are included.

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

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

"We need to overcome to players the reputational threat to the game," he states. "Once self-confidence has actually been damaged it is difficult 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 set up under the Gambling Act 2005 to regulate commercial gambling in Great Britain.

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

"The overwhelming bulk of sports betting happening 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 undermine the integrity of a sport, and it likewise harms the business interests of sports betting bodies and sports betting wagering."

The commission has actually established an in-house Sports Betting Intelligence Unit to get and share information to sporting authorities, wagering companies and policing authorities.

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

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

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

'Vulnerabilities'

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

However, Mr Tofiluk states there are still 8 continuous investigations, and that much useful info has likewise been passed to sports betting authorities.

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

Meanwhile, he states numerous of those looking to cheat the sports betting wagering market were well-informed about sports betting and sporting individuals, and about wagering operations and the movement of cash.

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