Sport Betting Industry Seeks To Protect Itself

Sport wagering industry looks to protect itself

16 September 2010

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By Bill Wilson

Business press reporter, BBC News

sports betting on sport is big company.

Sport England estimates the value of spending 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 actually grown even more, with an estimated ₤ 1bn bet on the World Cup alone in the UK this summertime.

Meanwhile, German research firm Sport & Markt approximates the total worldwide gaming market will deserve 263bn euros (₤ 220bn) by 2012, with much of that driven by web and sports betting gaming.

But when the integrity of occasions are hit the gaming industry suffers, and earnings are put under danger if consumers can not wager 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 gambling market now.

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

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

Three of these players have stated they will likewise 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, but was banned last week for six months for failing to report the illegal method to him to throw frames.

There are likewise 2 other continuing examinations - unrelated to Mr Higgins - into snooker.

'Honest'

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

"If the sport is perceived as sincere, straight and fair that is good for wagering firms due to the fact that people will spend money wagering with self-confidence," he says.

"If you take the Pakistan claims, although unassociated to the UK controlled wagering 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 take care 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 people who can repair a match are the competitors or the referee."

His organisation represents men and women 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 simply have deterrents, sanctions and disciplinary procedures, however that the way to take on possible problems around gamers is likewise through education.

Mr Taylor says guidelines need to be discussed plainly to players with clear examples, and by individuals they appreciate.

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

"If gamers are harder 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 better than cure, and we also make a point of telling players 'you are going to be caught'."

"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 bet, that is not in gambling firms' interests, and it is not in our interests."

He stated that when an excellent reputation was lost, the damage to a sport was "incalculable".

FA guidelines imply players are not enabled to bet on a competitors in which they are involved.

Mr Johnson says gamers need to be seen not to be cashing in on any inside understanding, which he states could cause "brand damage" to football and its competitions.

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

"We have to get over to gamers the reputational threat to the video game," he says. "Once confidence has 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 established under the Gambling Act 2005 to control industrial gambling in Great Britain.

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

"The frustrating bulk 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 unfaithful has the prospective to undermine the integrity of a sport, and it likewise harms the industrial interests of sports betting bodies and sports betting wagering."

The commission has actually established an internal Sports Betting Intelligence Unit to get and share info to sporting authorities, sports betting companies and policing authorities.

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

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

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

'Vulnerabilities'

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

However, Mr Tofiluk says there are still eight ongoing examinations, which much helpful info has 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 consider ceasing a criminal examination "in favour of letting sports betting governing bodies take the lead".

Meanwhile, he says a lot of those wanting to cheat the sports betting market were well-informed about sports betting and sporting individuals, and about wagering operations and the motion of cash.

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