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Sport wagering industry looks to safeguard itself

16 September 2010

By Bill Wilson

Business press reporter, BBC News

Betting on sport is substantial business.

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

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

Meanwhile, German research firm Sport & Markt estimates the total international 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 hit the betting industry suffers, and incomes are put under hazard if customers can not wager 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 speak about the sports betting gambling market now.
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"Not only is it a significant market in world company, it is one that is now on the front pages of papers."

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

Three of these gamers have actually 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 prohibited last week for six months for failing to report the prohibited technique 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, one of the UK's biggest online sporting exchanges.

"If the sport is perceived as sincere, straight and fair that benefits sports betting companies because individuals will spend money wagering with self-confidence," he says.
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"If you take the Pakistan claims, although unassociated to the UK regulated sports betting industry ... it is not really a positive story for sports betting in the UK.

"That is since the perception is that 'cricket is now something we might need to beware about'."
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'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 sportspersons and sportswomen.

As Simon Taylor of the Professional Players' Federation points out: "The only people who can fix a match are the rivals or the referee."
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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 inadequate to simply have deterrents, sanctions and disciplinary treatments, however that the method to deal with possible concerns around players is likewise through education.

Mr Taylor says rules require to be discussed clearly to gamers with clear examples, and by individuals they appreciate.

"Through informing gamers about sports betting you strengthen integrity and that remains in everyone'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 recommendations at the Football Association, .

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

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

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

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

FA guidelines suggest gamers are not allowed to bet on a competition in which they are involved.

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

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

"We have to get over to gamers the reputational danger to the game," he says. "Once confidence has been harmed it is difficult to get it back - mud sticks."

'Overwhelmingly legal'

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

The Gambling Commission was established under the Gambling Act 2005 to manage commercial gambling in Great Britain.
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An ex-chief constable of West Midlands cops, Mr Tofiluk has obligation 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 taking place through UK operators is legal and reasonable," he says.
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"But for some there is the temptation to ... corruptly hinder the result of a sporting event.

"Such cheating has the potential to undermine the stability of a sport, and it likewise damages the commercial interests of sports betting bodies and sports betting wagering."

The commission has actually developed an internal Sports Betting Intelligence Unit to get and disseminate information to sporting authorities, sports betting firms and policing authorities.

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

"We will alert sports betting of our issues, to assist prevent or reduce [unlawful] activity"

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

'Vulnerabilities'

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

However, Mr Tofiluk states there are still eight ongoing examinations, and that much useful info has likewise been passed to sports betting authorities.

He stated that where an examination by a sport governing body was quicker, and more expense effective, then the commission would think about ceasing a criminal investigation "in favour of letting sports betting governing bodies take the lead".
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Meanwhile, he says much of those seeking to cheat the sports betting wagering market were knowledgeable about sports betting and sporting individuals, and about sports betting operations and the movement of money.

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

Related internet links

World sports betting Law Report

ICC

Professional Players Federation

Professional Footballers' Association

The FA

Betfair

Sport & Markt

BLP

Gambling Commission

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