Sport betting industry wants to safeguard itself

16 September 2010

By Bill Wilson

Business press reporter, BBC News

sports betting on sport is substantial business.

Sport England approximates the value 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 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 worldwide gaming market will be worth 263bn euros (₤ 220bn) by 2012, with much of that driven by web and sports betting.

But when the stability of occasions are hit the gambling industry suffers, and profits are put under threat if clients can not wager with confidence.
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And there can have been few higher-profile sport sports betting stories than those affecting cricket and snooker this year.

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

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

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

Three of these gamers have actually said 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 champion John Higgins was cleared of match-fixing allegations, but was banned last week for six months for failing to report the prohibited approach to him to throw frames.

There are likewise 2 other continuing investigations - unrelated 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 viewed as sincere, straight and reasonable that benefits sports betting firms due to the fact that people will invest money wagering with confidence," he says.

"If you take the Pakistan accusations, although unrelated to the UK regulated wagering market ... it is not really a favorable 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 take care about'."

'Education'

So what can be done to prevent future scandals?

According to specialists at a World sports betting Law Report conference into sports betting, the focus needs to be on sportsmen and sportswomen.

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

His organisation represents guys and women in 15 sports betting in the UK, being an umbrella organisation for all gamer organisations, such as the Professional Footballers' Association.
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He thinks that it is not adequate to simply have deterrents, sanctions and disciplinary treatments, but that the method to take on possible issues around players is also through education.

Mr Taylor states guidelines require to be discussed plainly to gamers with clear examples, and by people they appreciate.
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"Through educating players about sports betting you enhance integrity and that is in everyone'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 guidance at the Football Association, concurs.
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"Prevention is much better than cure, and we also make a point of informing gamers 'you are going to be caught'."

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

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

He stated that as soon as a good reputation was lost, the damage to a sport was "incalculable".

FA rules imply players are not permitted to bank on a competitors in which they are included.

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

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 final the following spring.

"We need to get over to gamers the reputational threat to the game," he says. "Once confidence has been damaged it is tough to get it back - mud sticks."

'Overwhelmingly legal'

If this represents the "carrot" method, then maybe Nick Tofiluk, director of regulation at the 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 wagering in the UK apart from spread wagering, which is the remit of the FSA.

"The overwhelming bulk of sports betting wagering occurring through UK operators is legal and fair," he states.

"But for some there is the temptation to ... corruptly hinder the result of a sporting event.

"Such cheating has the prospective to undermine the stability of a sport, and it also harms the commercial interests of sports betting bodies and sports betting wagering."

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

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

"We will alert sports betting of our issues, to help avoid or curtail [prohibited] activity"

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

'Vulnerabilities'

But in a two-and-a-half year period there has been simply one prosecution, a 24-year-old guy who was cautioned for cheating in relation to greyhound racing.

However, Mr Tofiluk says there are still eight ongoing investigations, which much helpful 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 effective, then the commission would think about terminating a criminal investigation "in favour of letting sports betting governing bodies take the lead".

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

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

Related internet 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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