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Sport sports betting industry looks to protect itself
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16 September 2010
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By Bill Wilson

Business press reporter, BBC News

Betting on sport is huge company.

Sport England estimates the worth of costs on sport-related gambling 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 approximated ₤ 1bn bet on the World Cup alone in the UK this summer.

Meanwhile, German research study company Sport & Markt approximates the overall global gambling market will deserve 263bn euros (₤ 220bn) by 2012, with much of that driven by internet and sports betting gaming.

But when the of occasions are struck the sports betting industry suffers, and incomes are put under danger if clients can not wager with confidence.

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

High-profile

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

"Not only is it a substantial market in world service, it is one that is now on the front pages of papers."

Four Pakistan cricketers have been questioned by police over spot-fixing accusations connecting to a test against England at Lord's last month.
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Three of these players have actually said they will also challenge the corruption charges installed 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 last week for 6 months for failing to report the unlawful approach to him to toss frames.

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

'Honest'

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

"If the sport is perceived as honest, straight and reasonable that is excellent for sports betting companies since people will invest money sports betting with self-confidence," he states.

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

"That is due to the fact that the understanding is that 'cricket is now something we may have to beware about'."

'Education'

So what can be done to avoid future scandals?
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According to professionals at a World sports betting Law Report conference into sports betting gambling, the focus has 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 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 not adequate to simply have deterrents, sanctions and disciplinary procedures, however that the method to deal with possible problems around gamers is likewise through education.

Mr Taylor says rules need to be explained plainly to players with clear examples, and by individuals they respect.
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"Through educating players about sports betting you reinforce integrity which is in everyone'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 regulative legal suggestions at the Football Association, agrees.

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

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

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

He said that once a great track record was lost, the damage to a sport was "enormous".

FA guidelines imply gamers are not permitted to bet on a competitors in which they are included.

Mr Johnson says gamers have actually to be seen not to be capitalizing any inside knowledge, which he says might cause "brand damage" to football and its competitions.

So, even a 2nd Division player knocked out of the FA Cup in the fall can not bet on a Manchester United v Chelsea cup last the following spring.

"We have to get over to gamers the reputational risk to the game," he says. "Once self-confidence has been damaged it is difficult to get it back - mud sticks."

'Overwhelmingly legal'

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

The Gambling Commission was established under the Gambling Act 2005 to regulate industrial gambling in Great Britain.

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

"The overwhelming bulk of sports betting occurring through UK operators is legal and fair," he states.
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"But for some there is the temptation to ... corruptly hinder the result of a sporting event.

"Such unfaithful has the prospective to undermine the stability of a sport, and it also damages the business interests of sports betting bodies and sports betting wagering."

The commission has actually established an internal Sports Betting Intelligence Unit to get and share information to sporting authorities, sports betting companies and policing authorities.

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

"We will notify sports betting of our concerns, to help prevent or curtail [prohibited] activity"

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

'Vulnerabilities'

But in a two-and-a-half year duration there has been just one prosecution, a 24-year-old man who was cautioned for unfaithful in relation to greyhound racing.

However, Mr Tofiluk says there are still 8 ongoing examinations, which much helpful details 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 consider ceasing a criminal investigation "in favour of letting sports betting governing bodies take the lead".

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

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

Related web links

World sports betting Law Report

ICC

Professional Players Federation

Professional Footballers' Association

The FA

Betfair

Sport & Markt

BLP

Gambling Commission

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