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Sport wagering industry looks to safeguard itself

16 September 2010
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By Bill Wilson

Business reporter, BBC News
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Betting on sport is big organization.

Sport England approximates the value of costs 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 grown even more, with an approximated ₤ 1bn bet on the World Cup alone in the UK this summertime.

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

But when the integrity of events are struck the gambling industry suffers, and profits are put under risk if customers can not bet with self-confidence.

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

High-profile

As Sport & Markt's Gareth Moore observes: "Everyone speak about the sports betting 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 actually been questioned by authorities over spot-fixing accusations relating to a test against England at Lord's last month.

Three of these gamers 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, however was banned recently for six months for stopping working to report the illegal approach to him to throw frames.

There are also two other continuing examinations - not related to Mr Higgins - into snooker.

'Honest'

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

"If the sport is perceived as sincere, straight and reasonable that is excellent for sports betting companies because individuals will spend cash sports betting with confidence," he states.

"If you take the Pakistan claims, although unrelated to the UK regulated wagering market ... it is not truly a positive story for betting in the UK.

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

'Education'

So what can be done to prevent future scandals?

According to at a World sports betting Law Report conference into sports betting gambling, the focus needs to be on sportsmen 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 men and women 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 inadequate to merely have deterrents, sanctions and disciplinary treatments, but that the method to deal with possible problems around gamers is also through education.

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

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

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

'Brand damage'

Matt Johnson, head of regulatory legal recommendations at the Football Association, concurs.

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

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

"If it loses that then individuals don't want to wager, that is not in gaming companies' interests, and it is not in our interests."

He said that once a great reputation was lost, the damage to a sport was "incalculable".

FA rules mean gamers are not enabled to bank on a competitors in which they are involved.

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

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

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

'Overwhelmingly legal'

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

The Gambling Commission was set up under the Gambling Act 2005 to manage industrial gambling 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 occurring through UK operators is legal and reasonable," he states.

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

"Such unfaithful has the prospective to weaken the integrity of a sport, and it likewise damages the industrial interests of sports betting bodies and sports betting wagering."

The commission has established an in-house Sports Betting Intelligence Unit to receive and disseminate info to sporting authorities, sports betting companies and policing authorities.

"Since 2007 we have actually experienced a significant insight into world of corrupt sports betting," he states.
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"We will inform sports betting of our concerns, to assist avoid or reduce [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 duration there has actually been just one criminal prosecution, a 24-year-old guy who was warned for unfaithful in relation to greyhound racing.

However, Mr Tofiluk says there are still eight ongoing investigations, which much beneficial information has also been passed to sports betting authorities.

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

Meanwhile, he states many of those looking to cheat the sports betting market were experienced about sports betting and sporting individuals, and about wagering operations and the motion of money.

"They seek out the vulnerabilities of these to assist in their business."

Related internet links

World sports betting Law Report

ICC

Professional Players Federation

Professional Footballers' Association

The FA

Betfair

Sport & Markt

BLP
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Gambling Commission

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