Sport Betting Industry Seeks To Protect Itself

Sport sports betting industry looks to protect itself

16 September 2010

By Bill Wilson

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Business press reporter, BBC News

sports betting on sport is substantial company.

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

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

Meanwhile, German research study firm Sport & Markt estimates the overall international gambling 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 struck the gambling industry suffers, and incomes are put under danger if clients 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 talks about the sports betting gambling market now.

"Not only is it a considerable market in world organization, it is one that is now on the front pages of papers."

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

Three of these players have said 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 accusations, however was banned recently for six months for stopping working to report the unlawful approach to him to throw frames.

There are also two other continuing examinations - not associated to Mr Higgins - into snooker.

'Honest'

David O'Reilly is legal counsel for Betfair, among the UK's greatest online sporting exchanges.

"If the sport is perceived as truthful, straight and fair that benefits wagering firms since people will invest money wagering with confidence," he says.

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

"That is because the perception is that 'cricket is now something we might need to be mindful about'."

'Education'

So what can be done to prevent future scandals?

According to experts at a World sports betting Law Report conference into sports betting gambling, the focus needs to be on sportsmen 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 men and ladies 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 merely have deterrents, sanctions and disciplinary procedures, however that the method to take on prospective issues around players is likewise through education.

Mr Taylor states rules require to be explained plainly 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 includes.

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

'Brand damage'

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

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

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

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

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

FA rules mean players are not permitted to bet on a competitors in which they are included.

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

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

"We need to get over to players the reputational risk to the video game," he states. "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 maybe 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 business gaming in Great Britain.

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

"The overwhelming majority of sports betting occurring 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 cheating has the prospective to weaken the stability of a sport, and it likewise hurts the commercial interests of sports betting bodies and sports betting."

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

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

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

In May 2010, the commission also introduced a private telephone hotline for those with info 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 warned for unfaithful in relation to greyhound racing.

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

He stated that where an investigation 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 states much of those aiming to cheat the sports betting wagering industry were knowledgeable about sports betting and sporting people, and about sports betting operations and the movement of money.

"They seek out the vulnerabilities of these to help in their enterprises."