Sport wagering industry looks to protect itself

16 September 2010

By Bill Wilson

Business press reporter, BBC News

sports betting on sport is big organization.

Sport England estimates the worth of costs on sport-related betting in England grew from ₤ 1.7 bn in 1985 to ₤ 2.8 bn in 2008.

Which figure is most likely to have actually grown further, with an approximated ₤ 1bn bet on the World Cup alone in the UK this summer.

Meanwhile, German research company Sport & Markt estimates the total global betting market will deserve 263bn euros (₤ 220bn) by 2012, with much of that driven by internet and sports betting.

But when the integrity of events are hit the gambling industry suffers, and revenues are put under danger if consumers can not bet with self-confidence.

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

High-profile

As Sport & Markt’s Gareth Moore observes: “Everyone discuss the sports betting gambling market now.

“Not just is it a significant market in world organization, it is one that is now on the front pages of newspapers.”

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

Three of these players have stated they will likewise challenge the corruption charges installed versus the trio by the sport governing body the International Cricket Council.

Meanwhile, three-times snooker world champ John Higgins was cleared of match-fixing accusations, but was banned last week for six months for failing to report the prohibited approach to him to toss frames.

There are also two other continuing investigations - 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 perceived as truthful, straight and reasonable that is excellent for sports betting companies due to the fact that people will spend cash wagering with confidence,” he says.
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“If you take the Pakistan claims, although unrelated to the UK managed wagering industry … it is not actually a positive story for wagering in the UK.

“That is since the understanding is that ‘cricket is now something we might have to take care about’.”

‘Education’

So what can be done to prevent future scandals?

According to professionals 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 individuals 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 gamer organisations, such as the Professional Footballers’ Association.

He thinks that it is insufficient to simply have deterrents, and disciplinary treatments, however that the method to tackle possible problems around players is also through education.

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

“Through educating gamers about sports betting you strengthen stability and that is in everybody’s interest,” he includes.

“If gamers are harder to corrupt then sport will be harder to corrupt.”

‘Brand damage’

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

“Prevention is better than remedy, and we also make a point of informing gamers ‘you are going to be caught’.”

“It is necessary that sport is straight, and is seen to be straight,” he adds.

“If it loses that then people don’t wish to wager, that is not in gaming companies’ interests, and it is not in our interests.”

He stated that when a good track record was lost, the damage to a sport was “incalculable”.

FA rules suggest players are not allowed to bank on a competition in which they are included.

Mr Johnson states players have actually to be seen not to be capitalizing any inside understanding, which he states could cause “brand name damage” to football and its competitions.

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

“We have to overcome to gamers the reputational danger to the game,” he states. “Once self-confidence has 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 guideline at the Gambling Commission, represents the “stick”.

The Gambling Commission was established under the Gambling Act 2005 to manage industrial gambling in Great Britain.

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

“The frustrating majority of sports betting wagering taking place through UK operators is legal and reasonable,” he states.

“But for some there is the temptation to … corruptly disrupt the result of a sporting event.

“Such unfaithful has the prospective to weaken the integrity of a sport, and it also hurts the business interests of sports betting bodies and sports betting wagering.”
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The commission has developed an internal Sports Betting Intelligence Unit to receive and disseminate details to sporting authorities, wagering firms and policing authorities.

“Since 2007 we have experienced a considerable insight into world of corrupt sports betting wagering,” he says.

“We will inform sports betting of our issues, to help avoid or cut [illegal] activity”

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

‘Vulnerabilities’

But in a two-and-a-half year duration there has actually been simply one criminal prosecution, a 24-year-old guy who was warned for cheating in relation to greyhound racing.

However, Mr Tofiluk states there are still eight ongoing investigations, and that much helpful info has actually also 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 terminating a criminal examination “in favour of letting sports betting governing bodies take the lead”.

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

“They look for 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
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The FA

Betfair

Sport & Markt

BLP

Gambling Commission