Sport sports betting market aims to safeguard 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 spending on sport-related betting in England grew from ₤ 1.7 bn in 1985 to ₤ 2.8 bn in 2008.

And that figure is most 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 firm Sport & Markt estimates the total global gambling market will deserve 263bn euros (₤ 220bn) by 2012, with much of that driven by internet and sports betting gaming.
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But when the integrity of occasions are struck the gambling market suffers, and earnings are put under risk if consumers can not bet with confidence.

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

High-profile

As Sport & Markt's Gareth Moore observes: "Everyone speak 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 newspapers."

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

Three of these gamers have said they will also challenge the corruption charges mounted versus 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 banned recently for six months for stopping working to report the prohibited approach to him to toss frames.

There are also 2 other continuing examinations - not associated to Mr Higgins - into snooker.

'Honest'

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

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

"If you take the Pakistan claims, although unrelated to the UK controlled wagering industry ... it is not truly a favorable story for sports betting in the UK.

"That is since the perception is that 'cricket is now something we might need to beware about'."

'Education'

So what can be done to avoid future scandals?

According to professionals at a World sports betting Law Report conference into sports betting gambling, the focus has to be on sportsmen and sportswomen.
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As Simon Taylor of the Professional Players' Federation explains: "The only individuals who can fix a match are the rivals or the referee."

His organisation represents men and ladies 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 insufficient to simply have deterrents, sanctions and disciplinary procedures, however that the method to take on prospective issues around gamers is also through education.

Mr Taylor says rules require to be explained plainly to players with clear examples, and by individuals they appreciate.

"Through educating players about sports betting you enhance stability which remains in everyone's interest," he includes.

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

'Brand damage'

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

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

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

"If it loses that then individuals do not wish to wager, that is not in sports betting companies' interests, and it is not in our interests."

He stated that as soon as a great track record was lost, the damage to a sport was "enormous".

FA rules mean gamers are not allowed to bank on a competition in which they are included.
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Mr Johnson states players need to be seen not to be capitalizing any inside knowledge, which he says could cause "brand name damage" to football and its competitions.

So, even a 2nd Division gamer knocked out of the FA Cup in the autumn can not bet on a Manchester United v Chelsea cup last the following spring.

"We have to get over to players the reputational danger to the video game," he says. "Once confidence has been harmed 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 regulate industrial in Great Britain.

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

"The overwhelming bulk of sports betting wagering taking location through UK operators is legal and reasonable," he says.

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

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

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

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

"We will notify sports betting of our concerns, to help prevent or curtail [prohibited] activity"

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

'Vulnerabilities'

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

However, Mr Tofiluk says there are still 8 continuous examinations, and that much helpful details has also been passed to sports betting authorities.

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

Meanwhile, he says numerous of those seeking to cheat the sports betting wagering industry were knowledgeable about sports betting and sporting individuals, and about wagering operations and the movement of cash.

"They look for 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

Sport & Markt

BLP

Gambling Commission