Sport Betting Industry Looks To Protect Itself

Sport wagering industry looks to protect itself

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16 September 2010

By Bill Wilson

Business reporter, BBC News

sports betting on sport is huge company.

Sport England estimates the value 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 most likely to have actually grown even more, with an estimated ₤ 1bn bet on the World Cup alone in the UK this summer season.

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

But when the stability of occasions are struck the sports betting market suffers, and incomes are put under threat if clients can not bet with confidence.

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 talks about the sports betting gambling market now.

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

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

Three of these gamers have actually said 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 accusations, however was prohibited recently for six months for failing to report the illegal method to him to throw frames.

There are likewise two other continuing examinations - not associated to Mr Higgins - into snooker.

'Honest'

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

"If the sport is perceived as honest, straight and reasonable that benefits sports betting companies since people will spend cash sports betting with self-confidence," he says.

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

"That is since the perception is that 'cricket is now something we may need to beware 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 needs to be on sportsmen and sportswomen.

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

His organisation represents men and ladies 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 not enough to merely have deterrents, sanctions and disciplinary procedures, but that the method to take on potential concerns around gamers is likewise through education.

Mr Taylor states rules require to be described plainly to players with clear examples, and by people they appreciate.

"Through educating gamers about sports betting you enhance integrity which remains in everybody's interest," he includes.

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

'Brand damage'

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

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

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

"If it loses that then people do not want to wager, that is not in gambling firms' interests, and it is not in our interests."

He said that as soon as a great reputation was lost, the damage to a sport was "incalculable".

FA guidelines imply gamers are not permitted to bank on a competitors in which they are involved.

Mr Johnson says gamers 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 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 game," he says. "Once confidence has been damaged it is hard to get it back - mud sticks."

'Overwhelmingly legal'

If this represents the "carrot" method, then possibly 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 industrial gambling in Great Britain.

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

"The frustrating bulk of sports betting happening through UK operators is legal and reasonable," he says.

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

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

The commission has actually developed an internal Sports Betting Intelligence Unit to get and distribute information to sporting authorities, wagering companies and policing authorities.

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

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

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

'Vulnerabilities'

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

However, Mr Tofiluk states there are still 8 continuous investigations, and that much useful info has actually likewise been passed to sports betting authorities.

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

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

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