Sport Betting Industry Looks To Protect Itself

Sport wagering industry wants to protect itself

16 September 2010

By Bill Wilson

Business reporter, BBC News

sports betting on sport is big company.

Sport England approximates the worth 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 grown further, with an estimated ₤ 1bn bet on the World Cup alone in the UK this summer season.

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

But when the integrity of events are hit the sports betting industry suffers, and incomes are put under danger if clients can not wager 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 talks about the sports betting 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 actually been questioned by authorities over spot-fixing claims relating to a test against England at Lord's last month.

Three of these players have said they will likewise 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 claims, however was prohibited last week for 6 months for stopping working to report the unlawful approach to him to throw frames.

Register at Bet9ja using the promotion code YOHAIG for a N100,000 welcome bonus

There are likewise two other continuing investigations - 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 truthful, straight and reasonable that is great for wagering companies due to the fact that individuals will spend money sports betting with confidence," he states.

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

"That is because the understanding is that 'cricket is now something we may need to be careful about'."

'Education'

So what can be done to avoid future scandals?

According to specialists 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 explains: "The only people who can fix a match are the competitors or the referee."

His organisation represents guys 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 adequate to simply have deterrents, sanctions and disciplinary procedures, but that the method to tackle prospective concerns around gamers is likewise through education.

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

"Through educating gamers about sports betting you enhance integrity which is in everyone's interest," he adds.

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

'Brand damage'

Matt Johnson, head of regulative legal advice at the Football Association, agrees.

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

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

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

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

FA rules mean players are not permitted to wager on a competition in which they are involved.

Mr Johnson states gamers have to be seen not to be cashing in on any inside understanding, which he says could cause "brand damage" to football and its competitions.

So, even a Second 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 need to get over to players the reputational danger to the game," he says. "Once confidence has been harmed it is hard to get it back - mud sticks."

'Overwhelmingly legal'

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

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

An ex-chief constable of West Midlands cops, Mr Tofiluk has duty for policing all wagering in the UK apart from spread sports betting, 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 hinder the result of a sporting occasion.

"Such cheating has the potential to weaken the stability of a sport, and it also damages the business interests of sports betting bodies and sports betting wagering."

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

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

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

In May 2010, the commission also presented a confidential telephone hotline for those with info or suspicions.

'Vulnerabilities'

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

However, Mr Tofiluk says there are still eight continuous investigations, and that much helpful information has also been passed to sports betting authorities.

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

Meanwhile, he says numerous of those looking to cheat the sports betting wagering industry were educated about sports betting and sporting people, and about wagering operations and the movement of money.

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