Sport wagering industry looks to safeguard itself

16 September 2010

By Bill Wilson

Business reporter, BBC News

sports betting on sport is huge service.

Sport England approximates the worth 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 further, with an estimated ₤ 1bn bet on the World Cup alone in the UK this summer season.
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Meanwhile, German research study company Sport & Markt approximates the overall global gambling market will be worth 263bn euros (₤ 220bn) by 2012, with much of that driven by web and sports betting gaming.

But when the integrity of occasions are hit the sports betting market suffers, and incomes are put under hazard if consumers can not wager with confidence.

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

High-profile

As Sport & Markt's Gareth Moore observes: "Everyone discuss 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 actually 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, however was prohibited recently for 6 months for failing to report the unlawful method to him to throw frames.

There are also two other continuing examinations - not associated 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 truthful, straight and reasonable that benefits wagering firms due to the fact that people will invest money wagering with self-confidence," he says.

"If you take the Pakistan allegations, although unassociated to the UK regulated wagering market ... it is not really a positive story for wagering in the UK.

"That is since the understanding 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, the focus needs to be on sportspersons and sportswomen.

As Simon Taylor of the Professional Players' Federation points out: "The only people who can fix 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 not enough to merely have deterrents, sanctions and disciplinary procedures, but that the method to tackle prospective problems around gamers is likewise through education.

Mr Taylor says guidelines require to be described plainly to players with clear examples, and by people they respect.

"Through informing players about sports betting you strengthen integrity and that remains in everybody's interest," he adds.

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

'Brand damage'

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

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

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

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

He said that as soon as an excellent credibility was lost, the damage to a sport was "enormous".

FA guidelines suggest players are not allowed to bet on a competitors in which they are involved.

Mr Johnson states gamers need to be seen not to be cashing in on any inside knowledge, which he says might trigger "brand 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 final the following spring.

"We need to overcome to players the reputational risk to the game," he says. "Once self-confidence has actually been harmed it is difficult to get it back - mud sticks."

'Overwhelmingly legal'

If this represents the "carrot" approach, 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 manage business sports betting in Great Britain.

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

"The frustrating bulk of sports betting taking place through UK operators is legal and reasonable," he says.

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

"Such cheating has the potential to weaken the stability of a sport, and it likewise harms the commercial interests of sports betting bodies and sports betting."

The commission has developed an internal Sports Betting Intelligence Unit to get and share details to sporting authorities, sports betting firms 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 help prevent or reduce [unlawful] activity"
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In May 2010, the commission also introduced a personal telephone hotline for those with details 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 cautioned for unfaithful in relation to greyhound racing.

However, Mr Tofiluk says there are still 8 continuous examinations, which much useful information 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 discontinuing a criminal investigation "in favour of letting sports betting governing bodies take the lead".

Meanwhile, he states much of those wanting to cheat the sports betting market were well-informed about sports betting and sporting people, and about wagering operations and the motion of money.

"They look for out 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
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Betfair

Sport & Markt

BLP

Gambling Commission