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Sport wagering industry looks to secure itself

16 September 2010
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By Bill Wilson

Business reporter, BBC News

sports betting on sport is substantial business.

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.

And that 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 season.

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

But when the stability of events are hit the gambling market suffers, and revenues are put under threat if consumers can not bet with confidence.

And there can have been few higher-profile sport wagering stories than those affecting cricket and snooker this year.

High-profile
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As Sport & Markt's Gareth Moore observes: "Everyone talks about the sports betting market now.

"Not only 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 authorities over spot-fixing allegations relating 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 allegations, however was banned last week for 6 months for failing to report the prohibited method to him to throw frames.

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

'Honest'

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

"If the sport is viewed as honest, straight and fair that benefits wagering firms because individuals will spend money wagering with self-confidence," he states.

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

"That is because the perception 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 gambling, the focus has to be on sportspersons and sportswomen.

As Simon Taylor of the Professional Players' Federation mentions: "The only people who can fix a match are the rivals or the referee."

His organisation represents men and females 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 not adequate to merely have deterrents, sanctions and disciplinary treatments, however that the method to take on possible problems around gamers is likewise through education.

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

"Through educating gamers about sports betting you strengthen stability and that is in everyone's interest," he adds.

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

'Brand damage'

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

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

"It is vital that sport is straight, and is seen to be straight," he adds.

"If it loses that then individuals do not desire to bet, 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 suggest players are not enabled to wager on a competition in which they are involved.

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

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

"We have to overcome to players the reputational danger to the game," he states. "Once confidence has actually been damaged it is difficult to get it back - mud sticks."

'Overwhelmingly legal'

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

The Gambling Commission was set up under the Gambling Act 2005 to manage business sports betting in Great Britain.

An ex-chief constable of West Midlands cops, Mr Tofiluk has obligation for policing all wagering in the UK apart from spread wagering, which is the remit of the FSA.
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"The overwhelming majority 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 possible to weaken the stability of a sport, and it also damages the commercial interests of sports betting bodies and sports betting."

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

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

"We will notify sports betting of our issues, to help prevent or curtail [illegal] 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 duration there has been simply 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, which much beneficial info has actually likewise been passed to sports betting authorities.

He said that where an examination by a sport governing body was quicker, and more expense 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 lot of those seeking to cheat the sports betting wagering industry were well-informed about sports betting and sporting individuals, and about sports betting operations and the movement of cash.

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

Related web links

World sports betting Law Report

ICC

Professional Players Federation

Professional Footballers' Association
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The FA

Betfair

Sport & Markt

BLP

Gambling Commission
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