Sport Betting Industry Aims To Protect Itself

Sport wagering industry wants to protect itself

16 September 2010

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By Bill Wilson

Business reporter, BBC News

Betting on sport is big 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 actually grown even more, with an approximated ₤ 1bn bet on the World Cup alone in the UK this summer.

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

But when the stability of events are struck the sports betting industry suffers, and incomes are put under threat if clients 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 market now.

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

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

Three of these players have stated 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 6 months for failing to report the prohibited approach to him to toss frames.

There are also 2 other continuing investigations - not associated to Mr Higgins - into snooker.

'Honest'

David O'Reilly is legal counsel for Betfair, one of the UK's most significant online sporting exchanges.

"If the sport is perceived as truthful, straight and reasonable that benefits sports betting firms due to the fact that individuals will invest money sports betting with confidence," he states.

"If you take the Pakistan allegations, although unrelated to the UK regulated sports betting industry ... it is not really a favorable 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, the focus has to be on sportspersons and sportswomen.

As Simon Taylor of the Professional Players' Federation mentions: "The only individuals who can repair a match are the rivals or the referee."

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 insufficient to simply have deterrents, sanctions and disciplinary treatments, but that the way to take on prospective issues around gamers is likewise through education.

Mr Taylor states guidelines need to be explained plainly to gamers with clear examples, and by individuals they respect.

"Through educating gamers about sports betting wagering you enhance integrity and that remains in everybody's interest," he includes.

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

'Brand damage'

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

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

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

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

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

FA rules mean players are not allowed to bank on a competitors in which they are included.

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

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

"We need to get over to gamers the reputational threat to the video game," he says. "Once self-confidence has actually been damaged it is tough to get it back - mud sticks."

'Overwhelmingly legal'

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

The Gambling Commission was set up under the Gambling Act 2005 to regulate commercial gaming in Great Britain.

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

"The frustrating bulk of sports betting wagering taking location through UK operators is legal and fair," he states.

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

"Such cheating has the prospective to weaken the stability of a sport, and it also harms the business interests of sports betting bodies and sports betting."

The commission has established an internal Sports Betting Intelligence Unit to get and distribute details 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 says.

"We will alert sports betting of our concerns, to assist prevent 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 been simply one criminal prosecution, a 24-year-old male who was warned for unfaithful in relation to greyhound racing.

However, Mr Tofiluk states there are still 8 continuous examinations, and that much helpful info 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 efficient, then the commission would think about discontinuing a criminal investigation "in favour of letting sports betting governing bodies take the lead".

Meanwhile, he says numerous of those wanting to cheat the sports betting wagering industry were knowledgeable about sports betting and sporting individuals, and about wagering operations and the motion of cash.

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