Sport Betting Industry Seeks To Protect Itself

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Sport sports betting industry looks to protect itself

16 September 2010

By Bill Wilson

Business press reporter, BBC News

sports betting on sport is substantial service.

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

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

Meanwhile, German research study 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.

But when the stability of events are struck the gaming industry suffers, and earnings are put under threat if customers can not wager with confidence.

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

High-profile

As Sport & Markt's Gareth Moore observes: "Everyone speak about the sports betting market now.

"Not only is it a considerable market in world service, it is one that is now on the front pages of newspapers."

Four Pakistan cricketers have been questioned by authorities over spot-fixing allegations relating to a test versus England at Lord's last month.

Three of these gamers have actually said 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 champion John Higgins was cleared of match-fixing accusations, but was banned last week for six months for failing to report the unlawful approach to him to throw frames.

There are likewise 2 other continuing investigations - not related to Mr Higgins - into snooker.

'Honest'

David O'Reilly is legal counsel for Betfair, one of the UK's biggest online sporting exchanges.

"If the sport is perceived as truthful, straight and fair that benefits wagering companies since people will invest money sports betting with self-confidence," he says.

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

"That is due to the fact that the perception is that 'cricket is now something we might have to beware about'."

'Education'

So what can be done to prevent future scandals?

According to specialists 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 explains: "The only individuals who can fix a match are the competitors or the referee."

His organisation represents guys and ladies in 15 sports betting in the UK, being an umbrella organisation for all player organisations, such as the Professional Footballers' Association.

He believes that it is insufficient to simply have deterrents, sanctions and disciplinary procedures, however that the method to tackle potential problems around gamers is also through education.

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

"Through educating gamers about sports betting wagering you enhance integrity which remains 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 guidance at the Football Association, agrees.

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

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

"If it loses that then individuals don't wish to wager, that is not in sports betting firms' interests, and it is not in our interests."

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

FA guidelines mean players are not enabled to wager on a competitors in which they are involved.

Mr Johnson states players have actually to be seen not to be cashing in on any inside understanding, which he says might trigger "brand damage" to football and its competitors.

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

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

'Overwhelmingly legal'

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

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

An ex-chief constable of West Midlands authorities, Mr Tofiluk has responsibility 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 happening through UK operators is legal and reasonable," he says.

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

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

The commission has developed an internal Sports Betting Intelligence Unit to get and distribute 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 states.

"We will alert sports betting of our concerns, to help prevent or reduce [illegal] activity"

In May 2010, the commission likewise introduced a private telephone hotline for those with details or suspicions.

'Vulnerabilities'

But in a two-and-a-half year duration there has actually been simply one 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, and that much helpful information has actually likewise been passed to sports betting authorities.

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

Meanwhile, he states numerous of those wanting to cheat the sports betting wagering industry were knowledgeable about sports betting and sporting individuals, and about wagering operations and the movement of money.

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