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Sport wagering industry wants to safeguard itself

16 September 2010

By Bill Wilson

Business press reporter, BBC News

sports betting on sport is huge service.

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

And that figure is likely to have actually grown further, with an estimated ₤ 1bn bet on the World Cup alone in the UK this summer season.
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Meanwhile, German research company Sport & Markt estimates the total global sports betting market will deserve 263bn euros (₤ 220bn) by 2012, with much of that driven by internet and sports betting gambling.

But when the stability of occasions are hit the sports betting market suffers, and incomes are put under hazard if consumers can not wager with confidence.

And there can have been couple of 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 gambling market now.

"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 actually been questioned by authorities over spot-fixing allegations associating with a test versus England at Lord's last month.

Three of these players have stated they will also 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, however was banned recently for 6 months for stopping working to report the prohibited approach to him to toss frames.

There are also 2 other continuing examinations - not related 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 honest, straight and reasonable that benefits wagering firms due to the fact that people will spend cash wagering with confidence," he says.

"If you take the Pakistan claims, although unrelated to the UK managed wagering market ... it is not actually a positive story for sports betting in the UK.

"That is due to the fact that the perception 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 experts at a World sports betting Law Report conference into sports betting gambling, the focus needs to be on sportspersons and sportswomen.

As Simon Taylor of the Professional Players' Federation points out: "The only individuals who can fix a match are the competitors or the referee."

His organisation represents males and women in 15 sports betting in the UK, being an umbrella organisation for all player organisations, such as the Professional Footballers' Association.

He thinks that it is inadequate to merely have deterrents, sanctions and disciplinary treatments, however that the way to deal with prospective concerns around players is also through education.

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

"Through educating players about sports betting wagering you strengthen stability and that is in everyone'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, agrees.

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

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

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

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

FA guidelines imply gamers are not to bank on a competition in which they are included.
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Mr Johnson says players need to be seen not to be cashing in on any inside understanding, which he states could trigger "brand name damage" to football and its competitions.

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 need to overcome to players the reputational danger to the video game," he says. "Once confidence has actually been harmed it is hard to get it back - mud sticks."

'Overwhelmingly legal'

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

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

An ex-chief constable of West Midlands police, 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 occurring through UK operators is legal and fair," he says.

"But for some there is the temptation to ... corruptly hinder the outcome of a sporting occasion.

"Such cheating has the prospective to weaken the integrity of a sport, and it likewise damages the commercial interests of sports betting bodies and sports betting."

The commission has actually established an in-house 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," he says.
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"We will alert sports betting of our concerns, to help prevent or reduce [illegal] activity"

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

'Vulnerabilities'

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

However, Mr Tofiluk states there are still eight ongoing investigations, and that much helpful information 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 think about terminating a criminal examination "in favour of letting sports betting governing bodies take the lead".

Meanwhile, he says much of those wanting to cheat the sports betting wagering 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 assist in their business."

Related internet links

World sports betting Law Report

ICC

Professional Players Federation

Professional Footballers' Association

The FA

Betfair

Sport & Markt

BLP

Gambling Commission