Sport Betting Industry Looks To Protect Itself

Sport sports betting industry aims to safeguard itself

16 September 2010

By Bill Wilson

Business press reporter, BBC News

sports betting on sport is big service.

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

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

Meanwhile, German research company Sport & Markt approximates the overall global sports betting market will be worth 263bn euros (₤ 220bn) by 2012, with much of that driven by web and sports betting gambling.

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But when the stability of events are struck the gaming industry suffers, and earnings are put under threat if clients can not bet with self-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 talks about the sports betting market now.

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

Four Pakistan cricketers have actually been questioned by police over spot-fixing claims 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 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 claims, but was banned last week for 6 months for failing to report the unlawful technique to him to throw frames.

There are likewise two other continuing examinations - not related 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 honest, straight and fair that benefits sports betting companies because people will invest cash sports betting with self-confidence," he says.

"If you take the Pakistan accusations, although unrelated to the UK managed wagering industry ... it is not actually a positive story for sports betting in the UK.

"That is because the perception is that 'cricket is now something we may have to beware 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 gambling, the focus has to be on sportsmen and sportswomen.

As Simon Taylor of the Professional Players' Federation explains: "The only people who can fix a match are the competitors 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 thinks that it is inadequate to merely have deterrents, sanctions and disciplinary treatments, however that the method to take on prospective issues around players is likewise through education.

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

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

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

'Brand damage'

Matt Johnson, head of regulative legal advice at the Football Association, agrees.

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

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

"If it loses that then individuals do not desire to wager, that is not in sports betting firms' interests, and it is not in our interests."

He stated that when a great track record was lost, the damage to a sport was "enormous".

FA rules suggest players are not allowed to bank on a competitors in which they are involved.

Mr Johnson states gamers need to be seen not to be cashing in on any inside understanding, which he says 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 bank on a Manchester United v Chelsea cup last the following spring.

"We need to overcome to players the reputational threat to the video game," he says. "Once self-confidence has actually been harmed it is hard to get it back - mud sticks."

'Overwhelmingly legal'

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

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

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

"The frustrating majority of sports betting wagering occurring 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 unfaithful has the possible to undermine the integrity of a sport, and it likewise damages the business interests of sports betting bodies and sports betting wagering."

The commission has developed an internal Sports Betting Intelligence Unit to receive and distribute 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 states.

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

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

'Vulnerabilities'

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

However, Mr Tofiluk says there are still 8 continuous investigations, 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 expense effective, then the commission would think about terminating a criminal investigation "in favour of letting sports betting governing bodies take the lead".

Meanwhile, he states a lot of those wanting to cheat the sports betting wagering industry were educated about sports betting and sporting individuals, and about wagering operations and the motion of cash.

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