Sport betting market looks to safeguard itself

16 September 2010

By Bill Wilson

Business reporter, BBC News

Betting on sport is substantial service.

Sport England approximates the worth of spending on sport-related gambling in England grew from ₤ 1.7 bn in 1985 to ₤ 2.8 bn in 2008.

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

Meanwhile, German research study firm Sport & Markt estimates the overall worldwide betting market will deserve 263bn euros (₤ 220bn) by 2012, with much of that driven by internet and sports betting gambling.

But when the integrity of occasions are struck the sports betting market suffers, and profits are put under danger if consumers can not bet with self-confidence.

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

High-profile

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

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

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

Three of these gamers have stated they will likewise 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 failing to report the prohibited approach to him to toss frames.

There are also 2 other continuing examinations - 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 fair that is good for betting firms because people will invest cash sports betting with self-confidence," he states.

"If you take the Pakistan accusations, although unassociated to the UK controlled betting market ... it is not actually a positive story for betting in the UK.

"That is because the understanding is that 'cricket is now something we may have to take care 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 gambling, 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 thinks that it is inadequate to simply have deterrents, sanctions and disciplinary procedures, however that the way to deal with possible concerns around gamers is likewise through education.

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

"Through informing gamers about sports betting wagering you enhance integrity and that 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 advice at the Football Association, concurs.

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

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

"If it loses that then individuals do not wish to bet, that is not in gaming firms' interests, and it is not in our interests."

He stated that as soon as a great credibility was lost, the damage to a sport was "enormous".

FA guidelines imply gamers are not enabled to bank on a competitors in which they are involved.

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

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

"We have to get over to gamers the reputational risk to the video game," he states. "Once confidence has actually been damaged it is tough to get it back - mud sticks."

'Overwhelmingly legal'

If this represents the "carrot" technique, then possibly Nick Tofiluk, director of guideline at the Gambling Commission, represents the "stick".

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

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

"The frustrating majority of sports betting wagering happening through UK operators is legal and fair," he states.

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

"Such cheating has the potential to weaken the integrity of a sport, and it also hurts the industrial interests of sports betting bodies and sports betting wagering."

The commission has actually developed an internal Sports Betting Intelligence Unit to get and disseminate information to sporting authorities, sports betting companies and policing authorities.

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

"We will signal sports betting of our concerns, to help prevent or curtail [prohibited] activity"

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

'Vulnerabilities'

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

However, Mr Tofiluk states there are still 8 ongoing investigations, and that much beneficial information has also been passed to sports betting authorities.

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

Meanwhile, he states a lot of those seeking to cheat the sports betting wagering industry were well-informed about sports betting and sporting people, and about wagering operations and the movement of money.

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

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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