Sport wagering market seeks to safeguard itself

16 September 2010

By Bill Wilson

Business press reporter, BBC News

sports betting on sport is big company.

Sport England approximates the worth of spending on sport-related betting in England grew from ₤ 1.7 bn in 1985 to ₤ 2.8 bn in 2008.

And that figure is likely to have grown even more, with an estimated ₤ 1bn bet on the World Cup alone in the UK this summer.

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

But when the stability of events are hit the gambling industry suffers, and earnings are put under hazard if clients can not wager with confidence.

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 discuss the sports betting gambling market now.

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

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

Three of these players have said they will also 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 claims, but was banned last week for six months for failing to report the illegal technique to him to throw frames.

There are likewise two other continuing investigations - 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 perceived as truthful, straight and fair that benefits sports betting firms since people will spend money wagering with self-confidence," he states.

"If you take the Pakistan accusations, although unassociated to the UK controlled wagering industry ... it is not actually 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 might have to be careful about'."

'Education'

So what can be done to avoid 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 points out: "The only individuals who can repair a match are the competitors or the referee."

His organisation represents males and females in 15 sports betting in the UK, being an for all player organisations, such as the Professional Footballers' Association.

He thinks that it is inadequate to simply have deterrents, sanctions and disciplinary procedures, but that the way to tackle potential problems around players is likewise through education.
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Mr Taylor says guidelines require to be described plainly to players with clear examples, and by people they appreciate.

"Through educating players about sports betting wagering you strengthen stability which is in everybody's interest," he adds.

"If gamers are harder to corrupt then sport will be harder to corrupt."

'Brand damage'

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

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

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

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

He said that once an excellent credibility was lost, the damage to a sport was "enormous".

FA guidelines indicate players are not allowed to wager on a competitors in which they are involved.

Mr Johnson states players 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 competitors.

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

"We need to overcome to players the reputational danger to the game," he says. "Once self-confidence has actually been damaged it is tough to get it back - mud sticks."

'Overwhelmingly legal'

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

The Gambling Commission was established under the Gambling Act 2005 to control industrial gaming in Great Britain.

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

"The frustrating majority of sports betting occurring through UK operators is legal and fair," he says.
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"But for some there is the temptation to ... corruptly interfere with the outcome of a sporting event.
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"Such cheating has the prospective to undermine the stability of a sport, and it also harms the business interests of sports betting bodies and sports betting wagering."

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

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

"We will inform sports betting of our issues, to assist prevent or curtail [illegal] activity"

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

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

However, Mr Tofiluk says there are still eight ongoing investigations, which much useful info has likewise been passed to sports betting authorities.

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

Meanwhile, he states a number of those aiming to cheat the sports betting wagering industry were well-informed about sports betting and sporting people, and about sports betting operations and the movement of cash.

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

Related internet links

World sports betting Law Report

ICC

Professional Players Federation

Professional Footballers' Association

The FA

Betfair
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Sport & Markt

BLP
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Gambling Commission

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