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Sport wagering industry looks to safeguard itself
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16 September 2010
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By Bill Wilson

Business press reporter, BBC News

sports betting on sport is big 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 approximated ₤ 1bn bet on the World Cup alone in the UK this summertime.

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

But when the stability of events are hit the sports betting industry suffers, and earnings are put under hazard if clients can not bet with self-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 & Moore observes: "Everyone talks about the sports betting gambling market now.

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

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

Three of these players have 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 recently for six months for stopping working to report the prohibited approach 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 most significant online sporting exchanges.

"If the sport is viewed as truthful, straight and reasonable that benefits wagering firms because individuals will invest money sports betting with confidence," he says.

"If you take the Pakistan allegations, although unrelated to the UK managed sports betting industry ... it is not really 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 prevent 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 repair a match are the rivals or the referee."

His organisation represents guys and females 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 inadequate to simply have deterrents, sanctions and disciplinary treatments, however that the method to tackle possible problems around players is likewise through education.

Mr Taylor states rules need to be discussed clearly to players with clear examples, and by individuals they appreciate.

"Through informing gamers about sports betting you strengthen stability 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 also make a point of telling gamers 'you are going to be caught'."

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

"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 stated that once a good credibility was lost, the damage to a sport was "enormous".

FA rules suggest gamers are not permitted to wager on a competitors in which they are involved.

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

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

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

'Overwhelmingly legal'

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

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

An ex-chief constable of West Midlands authorities, 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 happening through UK operators is legal and fair," he states.

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

"Such unfaithful has the prospective to undermine the integrity 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 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," he says.

"We will notify sports betting of our concerns, to help avoid or reduce [illegal] activity"

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

'Vulnerabilities'

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

However, Mr Tofiluk says there are still 8 ongoing investigations, which much helpful info has likewise been passed to sports betting authorities.

He stated that where an examination by a sport governing body was quicker, and more cost 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 numerous of those looking to cheat the sports betting market were knowledgeable about sports betting and sporting people, and about wagering operations and the motion of cash.

"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
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BLP

Gambling Commission
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