Sport wagering market seeks to safeguard itself
16 September 2010
By Bill Wilson
Business reporter, BBC News
sports betting on sport is big service.
Sport England approximates the value of spending on sport-related gaming 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 approximated ₤ 1bn bet on the World Cup alone in the UK this summer season.
Meanwhile, German research company Sport & Markt estimates the general worldwide gaming market will be worth 263bn euros (₤ 220bn) by 2012, with much of that driven by internet and sports betting gaming.
But when the stability of events are hit the gambling industry suffers, and profits are put under risk if clients can not bet with self-confidence.
And there can have been few higher-profile sport betting stories than those affecting cricket and snooker this year.
High-profile
As Sport & Markt's Gareth Moore observes: "Everyone talks about the sports betting market now.
"Not only is it a substantial market in world organization, it is one that is now on the front pages of papers."
Four Pakistan cricketers have been questioned by authorities over spot-fixing claims connecting to a test against England at Lord's last month.
Three of these gamers have stated 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 champ John Higgins was cleared of match-fixing claims, however was banned recently for 6 months for failing to report the prohibited method to him to toss frames.
There are also 2 other continuing investigations - unrelated to Mr Higgins - into snooker.
'Honest'
David O'Reilly is legal counsel for Betfair, among the UK's most significant online sporting exchanges.
"If the sport is perceived as honest, straight and fair that is great for sports betting firms because people will spend cash sports betting with confidence," he says.
"If you take the Pakistan allegations, although unassociated to the UK regulated wagering industry ... it is not really a positive story for sports betting in the UK.
"That is since the perception is that 'cricket is now something we may need to beware 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 has 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 competitors 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 believes that it is insufficient to simply have deterrents, sanctions and disciplinary treatments, but that the way to deal with potential concerns around players is also through education.
Mr Taylor says rules need to be discussed clearly to gamers with clear examples, and by individuals they respect.
"Through educating players about sports betting you enhance integrity and that remains in everyone's interest," he includes.
"If players are more difficult to corrupt then sport will be more difficult to corrupt."
'Brand damage'
Matt Johnson, head of regulative legal guidance at the Football Association, agrees.
"Prevention is much better than cure, and we also make a point of telling players 'you are going to be caught'."
"It is imperative that sport is directly, and is seen to be straight," he adds.
"If it loses that then individuals don't wish to bet, that is not in gambling companies' interests, and it is not in our interests."
He said that once a good credibility was lost, the damage to a sport was "incalculable".
FA rules suggest gamers are not permitted to bank on a competitors in which they are included.
Mr Johnson says players have actually to be seen not to be capitalizing any inside understanding, which he says might trigger "brand name damage" to football and its competitions.
So, even a Second 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 have to overcome to players the reputational danger to the game," he says. "Once confidence has actually 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 regulation 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 obligation 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 happening through UK operators is legal and fair," he states.
"But for some there is the temptation to ... corruptly hinder the result of a sporting event.
"Such cheating has the potential to weaken the stability of a sport, and it also damages the business interests of sports betting bodies and sports betting wagering."
The commission has established an internal Sports Betting Intelligence Unit to get and disseminate information to sporting authorities, betting firms and policing authorities.
"Since 2007 we have experienced a substantial insight into world of corrupt sports betting wagering," he states.
"We will notify sports betting of our issues, to help avoid or reduce [prohibited] 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 period there has been simply one criminal prosecution, a 24-year-old man who was warned for cheating in relation to greyhound racing.
However, Mr Tofiluk says there are still eight ongoing examinations, and that much beneficial 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 efficient, then the commission would think about discontinuing a criminal examination "in favour of letting sports betting governing bodies take the lead".
Meanwhile, he says a lot of those aiming to cheat the sports betting market were experienced about sports betting and sporting individuals, and about sports betting 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
Betfair
Sport & Markt
BLP
Gambling Commission
