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Sport wagering industry aims to protect itself
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16 September 2010
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By Bill Wilson

Business reporter, BBC News

sports betting on sport is huge business.

Sport England estimates 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 grown further, with an approximated ₤ 1bn bet on the World Cup alone in the UK this summer season.

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

But when the integrity of events are hit the gambling industry suffers, and revenues are put under risk if consumers can not wager with confidence.

And there can have been couple of higher-profile sport sports betting 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 just is it a considerable market in world organization, it is one that is now on the front pages of newspapers."

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

Three of these gamers have stated they will also challenge the corruption charges mounted 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 claims, however was prohibited last week for six months for stopping working to report the unlawful technique to him to toss frames.

There are likewise 2 other continuing examinations - unrelated 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 viewed as sincere, straight and reasonable that is excellent for wagering firms since people will spend money wagering with confidence," he says.

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

"That is due to the fact that the understanding is that 'cricket is now something we might have to take care about'."

'Education'

So what can be done to avoid 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 Federation points out: "The only people who can fix a match are the competitors 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 believes that it is insufficient to simply have deterrents, sanctions and disciplinary procedures, but that the method to take on potential issues around players is also through education.

Mr Taylor says rules require to be explained clearly to gamers with clear examples, and by people they respect.

"Through educating players about sports betting you reinforce stability and that remains in everyone's interest," he adds.

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

'Brand damage'

Matt Johnson, head of regulative legal guidance at the Football Association, concurs.
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"Prevention is much better than treatment, and we likewise make a point of telling players 'you are going to be captured'."

"It is crucial that sport is straight, and is seen to be straight," he includes.

"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 as soon as a good track record was lost, the damage to a sport was "enormous".

FA guidelines indicate players are not permitted to bet on a competitors in which they are included.

Mr Johnson says gamers need to be seen not to be capitalizing any inside knowledge, which he states could cause "brand damage" to football and its competitors.

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

"We need to get over to gamers the reputational risk to the video game," he states. "Once 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 regulation at the Gambling Commission, represents the "stick".

The Gambling Commission was set up under the Gambling Act 2005 to control industrial gaming in Great Britain.

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

"The overwhelming majority of sports betting wagering occurring through UK operators is legal and reasonable," he says.

"But for some there is the temptation to ... corruptly hinder the result of a sporting event.

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

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 actually experienced a substantial insight into world of corrupt sports betting," he states.

"We will alert sports betting of our issues, to help avoid or cut [unlawful] activity"

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

'Vulnerabilities'

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

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

He stated that where an investigation by a sport governing body was quicker, and more cost 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 a lot of those aiming to cheat the sports betting wagering industry were experienced about sports betting and sporting individuals, and about sports betting operations and the movement of cash.

"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

Betfair

Sport & Markt

BLP

Gambling Commission
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