Sport Betting Industry Seeks To Protect Itself

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


Business press reporter, BBC News


sports betting on sport is big business.


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.


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


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.


But when the stability of are struck the sports betting industry suffers, and revenues are put under hazard if consumers can not wager 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 only is it a significant market in world company, it is one that is now on the front pages of newspapers."


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


Three of these gamers have actually 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, however was prohibited last week for 6 months for stopping working to report the unlawful technique to him to throw frames.


There are also two other continuing investigations - not related 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 viewed as sincere, straight and reasonable that benefits wagering firms because people will spend cash sports betting with self-confidence," he says.


"If you take the Pakistan accusations, although unrelated to the UK regulated wagering market ... it is not really a positive story for wagering in the UK.


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


'Education'


So what can be done to avoid future scandals?


According to professionals 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 explains: "The only people who can fix a match are the rivals or the referee."


His organisation represents males and women 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 inadequate to simply have deterrents, sanctions and disciplinary procedures, however that the way to deal with possible concerns around gamers is also through education.


Mr Taylor says guidelines need to be described plainly to gamers with clear examples, and by people they appreciate.


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


"If gamers are harder to corrupt then sport will be harder to corrupt."


'Brand damage'


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


"Prevention is much better than cure, and we likewise make a point of telling players '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 people do not desire to bet, that is not in sports betting firms' interests, and it is not in our interests."


He stated that once a good credibility was lost, the damage to a sport was "enormous".


FA rules mean gamers are not allowed to bank on a competitors in which they are involved.


Mr Johnson states gamers need to be seen not to be capitalizing 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 have to get over to players the reputational risk to the video game," he says. "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 regulation at the Gambling Commission, represents the "stick".


The Gambling Commission was set up under the Gambling Act 2005 to manage business gaming 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 wagering, which is the remit of the FSA.


"The overwhelming bulk of sports betting wagering taking place through UK operators is legal and reasonable," he says.


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


"Such unfaithful has the potential to weaken the stability of a sport, and it likewise harms the industrial interests of sports betting bodies and sports betting wagering."


The commission has established an in-house Sports Betting Intelligence Unit to receive and share information to sporting authorities, wagering companies and policing authorities.


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


"We will signal sports betting of our issues, to assist prevent or cut [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 prosecution, a 24-year-old guy who was cautioned for unfaithful in relation to greyhound racing.


However, Mr Tofiluk states there are still eight ongoing examinations, and that much beneficial information has likewise 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 think about ceasing a criminal investigation "in favour of letting sports betting governing bodies take the lead".


Meanwhile, he says much of those aiming to cheat the sports betting wagering industry were well-informed about sports betting and sporting people, and about wagering operations and the movement of cash.


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


Related internet links


World sports betting Law Report


ICC


Professional Players Federation


Professional Footballers' Association


The FA


Betfair


Sport & Markt


BLP
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Gambling Commission


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