Sport wagering industry seeks to safeguard itself

16 September 2010

By Bill Wilson

Business press reporter, BBC News

sports betting on sport is big business.

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.

Which 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.

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

But when the stability of occasions are hit the gaming market suffers, and earnings are put under danger if consumers can not bet with self-confidence.

And there can have been few higher-profile sport wagering 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.
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"Not just is it a considerable market in world organization, it is one that is now on the front pages of papers."

Four Pakistan cricketers have been questioned by cops over spot-fixing accusations connecting to a test versus England at Lord's last month.

Three of these gamers have actually stated 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 champion John Higgins was cleared of match-fixing accusations, but was banned last week for six months for failing to report the unlawful technique to him to throw frames.

There are also 2 other continuing investigations - unrelated to Mr Higgins - into snooker.

'Honest'

David O'Reilly is legal counsel for Betfair, among the UK's greatest online sporting exchanges.
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"If the sport is perceived as sincere, straight and reasonable that benefits wagering firms since individuals will invest cash sports betting with confidence," he says.

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

"That is since the understanding is that 'cricket is now something we might 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 has to be on sportspersons and sportswomen.

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

His organisation represents males and women 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 inadequate to simply have deterrents, sanctions and disciplinary treatments, however that the method to take on potential concerns around players is also through education.

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

"Through informing players about sports betting wagering you reinforce stability and that remains in everyone's interest," he adds.

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

'Brand damage'

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

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

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

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

He said that once an excellent track record was lost, the damage to a sport was "incalculable".

FA guidelines indicate players are not enabled to bet on a competition in which they are included.

Mr Johnson states gamers have actually to be seen not to be capitalizing any inside understanding, which he says could trigger "brand damage" to football and its competitors.

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

"We have to overcome to gamers the reputational threat to the video game," he says. "Once confidence has actually been harmed it is tough to get it back - mud sticks."

'Overwhelmingly legal'

If this represents the "carrot" method, then perhaps Nick Tofiluk, of policy at the Gambling Commission, represents the "stick".
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The Gambling Commission was set up under the Gambling Act 2005 to manage industrial gambling in Great Britain.

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

"The frustrating bulk of sports betting occurring through UK operators is legal and reasonable," he states.
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"But for some there is the temptation to ... corruptly interfere with the outcome of a sporting event.

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

The commission has actually established an in-house Sports Betting Intelligence Unit to receive and share information to sporting authorities, sports betting companies and policing authorities.

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

"We will notify sports betting of our concerns, to assist prevent or cut [illegal] activity"

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

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

However, Mr Tofiluk states there are still 8 ongoing investigations, and that much beneficial info has also been passed to sports betting authorities.

He said that where an examination by a sport governing body was quicker, and more cost efficient, then the commission would consider 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 market were well-informed about sports betting and sporting individuals, and about wagering operations and the movement of money.

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

Related web links

World sports betting Law Report

ICC

Professional Players Federation

Professional Footballers' Association

The FA

Betfair

Sport & Markt

BLP

Gambling Commission