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Sport wagering industry looks to safeguard 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 company.

Sport England approximates the value of costs on sport-related gaming in England grew from ₤ 1.7 bn in 1985 to ₤ 2.8 bn in 2008.

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

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

But when the integrity of events are hit the sports betting industry suffers, and revenues are put under hazard if customers can not bet 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 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 relating to a test versus England at Lord's last month.

Three of these gamers have actually stated 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 accusations, however was prohibited recently for six months for failing to report the unlawful approach to him to throw frames.

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

'Honest'

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

"If the sport is perceived as honest, straight and fair that is great for sports betting companies due to the fact that individuals will spend cash with confidence," he states.

"If you take the Pakistan allegations, although unrelated to the UK managed sports betting market ... it is not truly a favorable story for sports betting in the UK.

"That is because the perception is that 'cricket is now something we might have to beware 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, the focus needs to be on sportspersons and sportswomen.

As Simon Taylor of the Professional Players' Federation explains: "The only individuals who can repair 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 insufficient to simply have deterrents, sanctions and disciplinary procedures, however that the method to tackle prospective concerns around gamers is likewise through education.

Mr Taylor states guidelines need to be explained plainly to players with clear examples, and by individuals they respect.
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"Through educating gamers about sports betting you strengthen stability and that remains in everybody's interest," he adds.

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

'Brand damage'

Matt Johnson, head of regulatory legal recommendations at the Football Association, agrees.

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

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

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

He said that once an excellent credibility was lost, the damage to a sport was "enormous".

FA guidelines indicate players are not permitted to bank on a competition in which they are involved.

Mr Johnson states players need to be seen not to be cashing in on any inside knowledge, which he states could cause "brand name damage" to football and its competitors.

So, even a Second Division gamer knocked out of the FA Cup in the fall can not bank on a Manchester United v Chelsea cup last the following spring.

"We need to overcome to gamers the reputational danger to the game," he states. "Once self-confidence has been harmed it is hard to get it back - mud sticks."

'Overwhelmingly legal'

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

The Gambling Commission was set up under the Gambling Act 2005 to manage commercial gambling in Great Britain.

An ex-chief constable of West Midlands police, Mr Tofiluk has duty 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 occurring through UK operators is legal and reasonable," he says.

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

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

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

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

"We will alert sports betting of our issues, to assist avoid or curtail [illegal] 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 been just one criminal prosecution, a 24-year-old male who was cautioned for unfaithful in relation to greyhound racing.

However, Mr Tofiluk states there are still eight ongoing investigations, which much beneficial details has also been passed to sports betting authorities.

He stated that where an examination by a sport governing body was quicker, and more expense reliable, 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 number of those looking to cheat the sports betting wagering industry were experienced about sports betting and sporting individuals, and about wagering operations and the motion of money.

"They seek out the vulnerabilities of these to help in their enterprises."

Related web 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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