Sport wagering industry wants to safeguard itself

16 September 2010

By Bill Wilson

Business reporter, BBC News

sports betting on sport is substantial business.

Sport England estimates the worth of spending on sport-related sports betting in England grew from ₤ 1.7 bn in 1985 to ₤ 2.8 bn in 2008.
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Which figure is likely to have grown further, with an approximated ₤ 1bn bet on the World Cup alone in the UK this summer season.

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

But when the stability of events are struck the betting market suffers, and profits are put under risk if consumers can not wager with self-confidence.
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And there can have been couple of higher-profile sport sports betting stories than those impacting 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 just 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 authorities over spot-fixing allegations connecting to a test versus England at Lord's last month.

Three of these players 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 champ John Higgins was cleared of match-fixing claims, but was prohibited recently for six months for failing to report the unlawful approach to him to toss frames.

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

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

"If the sport is perceived as truthful, straight and reasonable that benefits wagering firms due to the fact that individuals will spend cash sports betting with self-confidence," he says.

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

"That is due to the fact that the perception is that 'cricket is now something we may have to take care about'."

'Education'

So what can be done to prevent future scandals?

According to specialists at a World sports betting Law Report conference into sports betting, the focus needs 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."

His organisation represents males 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 not enough to simply have deterrents, sanctions and disciplinary treatments, however that the method to take on possible issues around players is likewise through education.

Mr Taylor states rules need to be discussed plainly to players with clear examples, and by individuals they respect.

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

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

'Brand damage'

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

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

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

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

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

FA rules mean players are not enabled to bet on a competitors in which they are involved.

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

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

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

'Overwhelmingly legal'

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

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

An ex-chief constable of West Midlands authorities, 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 wagering occurring through UK operators is legal and reasonable," he states.

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

"Such unfaithful has the prospective to undermine the integrity of a sport, and it likewise damages the business interests of sports betting bodies and sports betting wagering."

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

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

"We will inform sports betting of our concerns, to assist avoid or cut [illegal] activity"

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

'Vulnerabilities'

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

However, Mr Tofiluk says there are still 8 ongoing investigations, and that much beneficial information 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 efficient, then the commission would think about discontinuing a criminal examination "in favour of letting sports betting governing bodies take the lead".

Meanwhile, he says many of those looking to cheat the sports betting wagering market were educated about sports betting and sporting individuals, and about sports betting operations and the movement of money.

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

Related web links

World sports betting Law Report

ICC

Professional Players Federation

Professional Footballers' Association

The FA
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Betfair

Sport & Markt
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BLP

Gambling Commission

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