Sport Betting Industry Seeks To Protect Itself

Sport sports betting market wants to secure itself

16 September 2010

By Bill Wilson

Business press reporter, BBC News

Betting on sport is huge service.

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Sport England estimates the value of spending on sport-related sports betting 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 approximated ₤ 1bn bet on the World Cup alone in the UK this summertime.

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

But when the stability of occasions are struck the gambling industry suffers, and profits are put under hazard if clients can not bet 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 gambling 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 police over spot-fixing claims relating to a test against England at Lord's last month.

Three of these players have actually said they will also challenge the corruption charges installed 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 allegations, but was banned last week for six months for failing to report the illegal method to him to toss frames.

There are likewise two other continuing examinations - 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 sincere, straight and fair that is good for wagering companies due to the fact that individuals will spend cash wagering with self-confidence," he states.

"If you take the Pakistan allegations, although unassociated to the UK controlled betting market ... it is not really a favorable story for sports betting in the UK.

"That is due to the fact that the perception is that 'cricket is now something we might need to be mindful about'."

'Education'

So what can be done to prevent future scandals?

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

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

His organisation represents males 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 insufficient to merely have deterrents, sanctions and disciplinary procedures, however that the way to take on potential problems around gamers is likewise through education.

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

"Through informing players about sports betting you strengthen stability which 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 recommendations at the Football Association, agrees.

"Prevention is much better than treatment, and we also make a point of telling players 'you are going to be caught'."

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

"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 when a good credibility was lost, the damage to a sport was "enormous".

FA rules mean players are not allowed to bet on a competitors in which they are included.

Mr Johnson says players need to be seen not to be cashing in on any inside knowledge, which he says might cause "brand name damage" to football and its competitions.

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 final the following spring.

"We need to get over to players the reputational risk to the video game," he says. "Once confidence has been harmed it is hard to get it back - mud sticks."

'Overwhelmingly legal'

If this represents the "carrot" method, then maybe Nick Tofiluk, director of guideline at the Gambling Commission, represents the "stick".

The Gambling Commission was established under the Gambling Act 2005 to regulate commercial gambling in Great Britain.

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

"The overwhelming majority of sports betting taking location through UK operators is legal and reasonable," he states.

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

"Such cheating has the possible to undermine the stability of a sport, and it likewise hurts the commercial interests of sports betting bodies and sports betting wagering."

The commission has actually developed an internal Sports Betting Intelligence Unit to receive and share info to sporting authorities, sports betting companies and policing authorities.

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

"We will alert sports betting of our issues, to assist prevent or curtail [unlawful] 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 actually been simply one prosecution, a 24-year-old male who was warned for cheating in relation to greyhound racing.

However, Mr Tofiluk states there are still 8 ongoing investigations, and that much beneficial info has likewise been passed to sports betting authorities.

He stated 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 number of those aiming to cheat the sports betting market were well-informed about sports betting and sporting people, and about wagering operations and the motion of cash.

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