Sport Betting Industry Looks To Protect Itself

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Sport sports betting market looks to protect itself

16 September 2010

By Bill Wilson

Business press reporter, BBC News

sports betting on sport is big service.

Sport England approximates the worth of spending on sport-related gaming 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 approximated ₤ 1bn bet on the World Cup alone in the UK this summer season.

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

But when the integrity of events are hit the sports betting industry suffers, and revenues are put under danger if consumers can not wager with self-confidence.

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

High-profile

As Sport & Moore observes: "Everyone talks about the sports betting gambling market now.

"Not just is it a substantial market in world business, it is one that is now on the front pages of newspapers."

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

Three of these gamers have actually said 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 champ John Higgins was cleared of match-fixing claims, but was banned last week for 6 months for failing to report the prohibited approach to him to throw frames.

There are likewise two other continuing examinations - unrelated to Mr Higgins - into snooker.

'Honest'

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

"If the sport is perceived as honest, straight and fair that benefits wagering companies since individuals will spend money wagering with self-confidence," he says.

"If you take the Pakistan allegations, although unassociated to the UK controlled wagering market ... it is not actually a favorable story for wagering in the UK.

"That is since the understanding is that 'cricket is now something we may have to be careful about'."

'Education'

So what can be done to prevent future scandals?

According to experts at a World sports betting Law Report conference into sports betting gambling, the focus needs to be on sportspersons and sportswomen.

As Simon Taylor of the Professional Players' Federation points out: "The only people who can fix a match are the competitors or the referee."

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

He thinks that it is insufficient to merely have deterrents, sanctions and disciplinary procedures, however that the method to tackle prospective concerns around gamers is likewise through education.

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

"Through educating players about sports betting you enhance integrity which is in everyone's interest," he includes.

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

'Brand damage'

Matt Johnson, head of regulative legal advice at the Football Association, agrees.

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

"It is vital that sport is directly, and is seen to be directly," he includes.

"If it loses that then people don't desire to bet, that is not in gaming companies' interests, and it is not in our interests."

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

FA guidelines suggest players are not permitted to bank on a competitors in which they are included.

Mr Johnson says gamers have actually to be seen not to be capitalizing any inside understanding, which he states could cause "brand damage" to football and its competitions.

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

"We have to overcome to players the reputational threat to the game," he says. "Once self-confidence has been harmed it is tough to get it back - mud sticks."

'Overwhelmingly legal'

If this represents the "carrot" technique, then possibly 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 sports betting 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 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 outcome of a sporting occasion.

"Such cheating has the prospective to undermine the stability of a sport, and it likewise hurts the business interests of sports betting bodies and sports betting wagering."

The commission has established an internal Sports Betting Intelligence Unit to get and share info to sporting authorities, wagering firms and policing authorities.

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

"We will inform sports betting of our issues, to help avoid or reduce [prohibited] activity"

In May 2010, the commission also introduced a confidential 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 cheating in relation to greyhound racing.

However, Mr Tofiluk says there are still 8 ongoing investigations, which much useful info has actually also 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 stopping a criminal investigation "in favour of letting sports betting governing bodies take the lead".

Meanwhile, he states many of those aiming to cheat the sports betting market were well-informed about sports betting and sporting people, and about sports betting operations and the movement of money.

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