Sport Betting Industry Aims To Protect Itself

Sport sports betting industry looks to secure itself

16 September 2010

By Bill Wilson

Business press reporter, BBC News

Betting on sport is big service.

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.

And that figure is most likely to have actually grown further, with an approximated ₤ 1bn bet on the World Cup alone in the UK this summertime.

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

But when the integrity of occasions are hit the gaming industry suffers, and incomes are put under threat if consumers can not bet 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 talks about the sports betting gambling market now.

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

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

Three of these gamers have actually said they will likewise 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 accusations, however was prohibited recently for 6 months for stopping working to report the illegal method to him to toss frames.

There are also 2 other continuing investigations - 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 honest, straight and reasonable that benefits wagering companies since people will invest cash betting with confidence," he says.

"If you take the Pakistan claims, although unassociated to the UK regulated wagering market ... it is not truly a positive story for wagering in the UK.

"That is due to the fact that the perception is that 'cricket is now something we might have to be careful about'."

'Education'

So what can be done to prevent future scandals?

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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 explains: "The only individuals who can fix a match are the competitors 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 inadequate to simply have deterrents, sanctions and disciplinary procedures, but that the method to take on potential issues around gamers is also through education.

Mr Taylor says rules require to be explained plainly to players with clear examples, and by individuals they appreciate.

"Through informing gamers about sports betting wagering you enhance integrity which remains in everyone's interest," he adds.

"If players 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, agrees.

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

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

"If it loses that then individuals don't wish to bet, that is not in sports betting firms' interests, and it is not in our interests."

He said that when a great reputation was lost, the damage to a sport was "enormous".

FA rules imply gamers are not enabled to wager on a competition in which they are included.

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

So, even a 2nd 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 overcome to gamers the reputational danger to the game," he states. "Once confidence has been harmed it is difficult to get it back - mud sticks."

'Overwhelmingly legal'

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

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

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

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

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

"Such unfaithful has the possible to undermine the integrity of a sport, and it also harms the commercial interests of sports betting bodies and sports betting wagering."

The commission has developed an internal Sports Betting Intelligence Unit to receive and distribute info to sporting authorities, wagering firms and policing authorities.

"Since 2007 we have actually experienced a substantial insight into world of corrupt sports betting wagering," he says.

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

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

'Vulnerabilities'

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

However, Mr Tofiluk says there are still eight continuous investigations, which much helpful information has actually also been passed to sports betting authorities.

He stated that where an investigation by a sport governing body was quicker, and more expense efficient, then the commission would consider stopping a criminal examination "in favour of letting sports betting governing bodies take the lead".

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

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