Sport Betting Industry Seeks To Protect Itself

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Sport betting industry seeks to protect itself

16 September 2010

By Bill Wilson

Business press reporter, BBC News

Betting on sport is huge service.

Sport England estimates 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 likely to have actually grown even more, with an estimated ₤ 1bn bet on the World Cup alone in the UK this summer season.

Meanwhile, German research firm Sport & Markt estimates the total international gaming market will deserve 263bn euros (₤ 220bn) by 2012, with much of that driven by web and sports betting gaming.

But when the integrity of events are hit the gambling market suffers, and profits are put under risk if customers can not bet with self-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 talks about the sports betting market now.

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

Four Pakistan cricketers have actually been questioned by police over spot-fixing claims 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 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 stopping working to report the unlawful approach to him to toss frames.

There are also two other continuing investigations - unrelated to Mr Higgins - into snooker.

'Honest'

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

"If the sport is viewed as honest, straight and reasonable that is good for wagering firms because people will invest cash wagering with self-confidence," he states.

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

"That is since the understanding is that 'cricket is now something we might need to take care 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, the focus needs to be on sportsmen and sportswomen.

As Simon Taylor of the Professional Players' Federation mentions: "The only individuals who can repair a match are the rivals 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 not sufficient to simply have deterrents, sanctions and disciplinary procedures, but that the way to tackle possible problems around gamers is also through education.

Mr Taylor says guidelines need to be discussed clearly to players with clear examples, and by individuals they respect.

"Through informing players about sports betting wagering you enhance stability which is 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 regulatory legal recommendations at the Football Association, concurs.

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

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

"If it loses that then people don't desire to wager, that is not in gambling firms' interests, and it is not in our interests."

He stated that when a good credibility was lost, the damage to a sport was "incalculable".

FA rules indicate gamers are not enabled to bet on a competitors in which they are involved.

Mr Johnson says players have to be seen not to be capitalizing any inside knowledge, which he states 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 bet on a Manchester United v Chelsea cup last the following spring.

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

'Overwhelmingly legal'

If this represents the "carrot" method, then maybe 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 obligation for policing all sports betting in the UK apart from spread wagering, which is the remit of the FSA.

"The overwhelming bulk of sports betting occurring through UK operators is legal and fair," he states.

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

"Such cheating has the potential to undermine the stability of a sport, and it likewise harms the commercial interests of sports betting bodies and sports betting."

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

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

"We will inform sports betting of our issues, to assist prevent or curtail [prohibited] activity"

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

'Vulnerabilities'

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

However, Mr Tofiluk states there are still 8 ongoing examinations, and that much useful information has likewise been passed to sports betting authorities.

He said that where an investigation by a sport governing body was quicker, and more expense efficient, then the commission would think about stopping a criminal examination "in favour of letting sports betting governing bodies take the lead".

Meanwhile, he says a lot of those looking to cheat the sports betting wagering market were experienced about sports betting and sporting individuals, and about wagering operations and the motion of cash.

"They seek out the vulnerabilities of these to assist in their business."