Sport wagering industry looks to protect itself

16 September 2010

By Bill Wilson

Business press reporter, BBC News

sports betting on sport is big business.

Sport England estimates the worth 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 summer.

Meanwhile, German research company Sport & Markt approximates the total international gaming market will be worth 263bn euros (₤ 220bn) by 2012, with much of that driven by web and sports betting.
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But when the integrity of occasions are struck the gaming market suffers, and earnings are put under hazard if customers can not bet 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 speak 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 papers."

Four Pakistan cricketers have been questioned by police over spot-fixing allegations associating with a test versus England at Lord's last month.

Three of these gamers have said they will also challenge the corruption charges installed 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 claims, but was prohibited recently for 6 months for stopping working to report the unlawful method to him to toss 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 biggest online sporting exchanges.

"If the sport is perceived as honest, straight and reasonable that benefits sports betting firms because individuals will invest cash wagering with self-confidence," he says.

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

"That is because the understanding is that 'cricket is now something we might need to beware 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 has to be on sportspersons and sportswomen.

As Simon Taylor of the Professional Players' Federation explains: "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 simply have deterrents, sanctions and disciplinary treatments, however that the way to tackle potential issues around players is also through education.
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Mr Taylor says rules require to be discussed clearly to gamers with clear examples, and by individuals they appreciate.

"Through informing gamers about sports betting wagering you strengthen integrity which is in everyone's interest," he adds.
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"If players are harder to corrupt then sport will be more difficult to corrupt."

'Brand damage'

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

"Prevention is much better than treatment, and we likewise make a point of informing gamers 'you are going to be caught'."

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

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

He stated that when an excellent credibility was lost, the damage to a sport was "incalculable".

FA rules imply players are not enabled to bet on a competitors in which they are included.

Mr Johnson states gamers need to be seen not to be cashing in on any inside understanding, which he says might cause "brand damage" to football and its competitors.

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

"We need to overcome to gamers the reputational threat to the video game," he states. "Once self-confidence has been harmed it is difficult to get it back - mud sticks."

'Overwhelmingly legal'

If this represents the "carrot" technique, then maybe Nick Tofiluk, director of policy at the Gambling Commission, represents the "stick".
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The Gambling Commission was established under the Gambling Act 2005 to manage industrial gaming in Great Britain.

An of West Midlands cops, Mr Tofiluk has responsibility for policing all sports betting in the UK apart from spread wagering, which is the remit of the FSA.

"The overwhelming majority of sports betting wagering taking place through UK operators is legal and fair," he states.

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

"Such cheating has the potential to undermine the integrity of a sport, and it also harms the commercial interests of sports betting bodies and sports betting wagering."

The commission has developed an in-house Sports Betting Intelligence Unit to receive and distribute information to sporting authorities, sports betting companies and policing authorities.

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

"We will alert sports betting of our issues, to assist prevent or cut [prohibited] activity"

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

'Vulnerabilities'

But in a two-and-a-half year period 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 8 continuous investigations, and that much helpful information has actually also been passed to sports betting authorities.

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

Meanwhile, he says many of those looking to cheat the sports betting wagering market were knowledgeable about sports betting and sporting individuals, and about sports betting operations and the movement of cash.

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

Related web links

World sports betting Law Report

ICC

Professional Players Federation

Professional Footballers' Association

The FA

Betfair

Sport & Markt

BLP

Gambling Commission

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