Sport sports betting market wants to protect itself
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16 September 2010

By Bill Wilson

Business press reporter, BBC News

sports betting on sport is big service.

Sport England estimates the value of spending on sport-related gambling in England grew from ₤ 1.7 bn in 1985 to ₤ 2.8 bn in 2008.

Which figure is likely to have actually grown further, with an estimated ₤ 1bn bet on the World Cup alone in the UK this summer.

Meanwhile, German research & Markt estimates the general worldwide gambling market will deserve 263bn euros (₤ 220bn) by 2012, with much of that driven by internet and sports betting.

But when the integrity of events are struck the gambling industry suffers, and earnings are put under threat if customers can not bet with self-confidence.

And there can have been few higher-profile sport sports betting stories than those impacting cricket and snooker this year.

High-profile

As Sport & Markt's Gareth Moore observes: "Everyone talks about the sports betting market now.

"Not just is it a substantial market in world business, it is one that is now on the front pages of newspapers."
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Four Pakistan cricketers have actually been questioned by authorities over spot-fixing accusations relating to a test versus England at Lord's last month.

Three of these players have said 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 allegations, however was prohibited last week for six months for failing to report the prohibited method to him to throw frames.

There are likewise 2 other continuing examinations - not associated 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 sincere, straight and fair that benefits wagering firms due to the fact that people will spend money sports betting with confidence," he says.

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

"That is since the understanding is that 'cricket is now something we might need to be careful about'."
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'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 needs 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 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 enough to simply have deterrents, sanctions and disciplinary treatments, but that the way to tackle potential problems around gamers is also through education.

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

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

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

'Brand damage'

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

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

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

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

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

FA rules mean gamers are not permitted to bank on a competitors in which they are involved.

Mr Johnson states gamers need to be seen not to be cashing in on any inside understanding, which he says could trigger "brand 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 final the following spring.

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

'Overwhelmingly legal'

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

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

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

"The overwhelming bulk of sports betting taking place through UK operators is legal and reasonable," he says.

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

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

The commission has actually developed an in-house Sports Betting Intelligence Unit to get and disseminate information to sporting authorities, wagering companies and policing authorities.

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

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

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

'Vulnerabilities'

But in a two-and-a-half year period there has actually been simply one prosecution, a 24-year-old man 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 likewise been passed to sports betting authorities.

He stated 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 states many of those looking to cheat the sports betting market were experienced about sports betting and sporting people, and about wagering operations and the movement of money.

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

Related internet links

World sports betting Law Report

ICC

Professional Players Federation

Professional Footballers' Association
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The FA

Betfair

Sport & Markt

BLP

Gambling Commission