Sport Betting Industry Aims To Protect Itself

Sport betting industry aims to secure itself

16 September 2010

By Bill Wilson

Business press reporter, BBC News

sports betting on sport is huge business.

Sport England estimates the worth 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 even more, with an approximated ₤ 1bn bet on the World Cup alone in the UK this summer.

Meanwhile, German research study company Sport & Markt approximates the general worldwide sports betting market will deserve 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 market suffers, and profits are put under danger if consumers can not wager with confidence.

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And there can have been few higher-profile sport betting stories than those affecting 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 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 accusations connecting to a test versus England at Lord's last month.

Three of these players have actually stated 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 champ John Higgins was cleared of match-fixing accusations, however was banned last week for six months for stopping working to report the illegal technique to him to throw frames.

There are also 2 other continuing investigations - not associated to Mr Higgins - into snooker.

'Honest'

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

"If the sport is perceived as honest, straight and fair that is excellent for betting firms due to the fact that individuals will invest money sports betting with self-confidence," he states.

"If you take the Pakistan accusations, although unrelated to the UK regulated betting industry ... it is not really a favorable story for wagering 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, 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 men and women 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 not sufficient to merely have deterrents, sanctions and disciplinary procedures, but that the method to tackle potential concerns around gamers is also through education.

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

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

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

'Brand damage'

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

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

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

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

He said that once a good reputation was lost, the damage to a sport was "incalculable".

FA guidelines mean players are not permitted to bank on a competition in which they are involved.

Mr Johnson states gamers need to be seen not to be capitalizing any inside knowledge, which he states might cause "brand name damage" to football and its competitors.

So, even a Second Division player knocked out of the FA Cup in the autumn can not wager on a Manchester United v Chelsea cup last the following spring.

"We need to get over to players the reputational risk to the video game," he states. "Once self-confidence has been harmed it is tough 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 gambling in Great Britain.

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

"The overwhelming bulk of sports betting wagering happening through UK operators is legal and fair," he says.

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

"Such unfaithful has the potential to undermine the integrity of a sport, and it also hurts the industrial interests of sports betting bodies and sports betting wagering."

The commission has established an internal Sports Betting Intelligence Unit to get and share information to sporting authorities, 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 issues, to help prevent or curtail [prohibited] activity"

In May 2010, the commission also introduced a confidential 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 man who was cautioned for cheating in relation to greyhound racing.

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

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

Meanwhile, he states a lot of those aiming to cheat the sports betting wagering industry were experienced about sports betting and sporting people, and about betting operations and the movement of money.

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