Sport Betting Industry Seeks To Protect Itself

Sport betting industry aims to secure itself

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16 September 2010

By Bill Wilson

Business press reporter, BBC News

sports betting on sport is big business.

Sport England estimates the value of costs on sport-related betting 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 summertime.

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

But when the integrity of occasions are struck the gaming industry suffers, and earnings are put under danger if consumers can not bet 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 speak about the sports betting market now.

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

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

Three of these gamers have actually stated they will also challenge the corruption charges mounted 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 claims, but was prohibited recently for six months for failing to report the illegal approach 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 viewed as truthful, straight and reasonable that is great for betting companies since individuals will spend money sports betting with confidence," he says.

"If you take the Pakistan accusations, although unrelated to the UK regulated betting market ... it is not really a favorable story for wagering in the UK.

"That is since the understanding is that 'cricket is now something we might need to take care about'."

'Education'

So what can be done to prevent future scandals?

According to professionals at a World sports betting Law Report conference into sports betting, the focus has to be on sportsmen and sportswomen.

As Simon Taylor of the Professional Players' Federation mentions: "The only individuals who can fix 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 gamer organisations, such as the Professional Footballers' Association.

He thinks that it is not adequate to merely have deterrents, sanctions and disciplinary procedures, but that the way to deal with prospective issues around gamers is likewise through education.

Mr Taylor says guidelines need to be discussed clearly to gamers with clear examples, and by people they respect.

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

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

'Brand damage'

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

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

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

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

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

FA rules imply gamers are not enabled to bank on a competition in which they are involved.

Mr Johnson says players need to be seen not to be cashing in on any inside knowledge, which he states might cause "brand name damage" to football and its competitions.

So, even a Second Division gamer 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 risk to the video game," he states. "Once confidence has actually been damaged it is hard to get it back - mud sticks."

'Overwhelmingly legal'

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

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

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 overwhelming majority of sports betting wagering happening through UK operators is legal and reasonable," he says.

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

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

The commission has actually established an in-house Sports Betting Intelligence Unit to get and disseminate 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 wagering," he states.

"We will inform sports betting of our concerns, to help prevent or reduce [prohibited] activity"

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

'Vulnerabilities'

But in a two-and-a-half year duration there has actually been simply one criminal prosecution, a 24-year-old man who was cautioned for cheating in relation to greyhound racing.

However, Mr Tofiluk says there are still eight continuous investigations, and that much helpful details has actually likewise been passed to sports betting authorities.

He said that where an investigation by a sport governing body was quicker, and more cost effective, then the commission would consider terminating 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 industry were educated about sports betting and sporting individuals, and about wagering operations and the motion of money.

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