Sport Betting Industry Seeks To Protect Itself

Sport wagering industry aims to protect itself

16 September 2010

By Bill Wilson

Business reporter, BBC News

sports betting on sport is substantial business.

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 summer season.

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

But when the integrity of occasions are hit the gambling industry suffers, and earnings are put under risk if consumers can not wager with 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 & Moore observes: “Everyone discuss the sports betting market now.

“Not just is it a significant market in world service, it is one that is now on the front pages of papers.”

Four Pakistan cricketers have been questioned by cops over spot-fixing allegations associating with a test against England at Lord’s last month.

Three of these players have actually said they will also 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, but was banned last week for six months for failing to report the illegal technique to him to throw frames.

There are also 2 other continuing examinations – not related 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 perceived as truthful, straight and reasonable that benefits sports betting firms since individuals will spend money wagering with self-confidence,” he says.

“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 because the perception 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 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 mentions: “The only people who can fix 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 believes that it is inadequate to simply have deterrents, sanctions and disciplinary procedures, however that the way to deal with prospective 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 gamers about sports betting you reinforce integrity which remains in everybody’s interest,” he includes.

“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 better than cure, and we also make a point of telling players ‘you are going to be captured’.”

“It is vital that sport is directly, and is seen to be directly,” he adds.

“If it loses that then people do not desire to bet, that is not in gaming firms’ interests, and it is not in our interests.”

He said that once a good credibility was lost, the damage to a sport was “incalculable”.

FA guidelines imply players are not allowed to wager on a competition in which they are involved.

Mr Johnson states players need to be seen not to be cashing in on any inside understanding, which he says 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 bank on a Manchester United v Chelsea cup last the following spring.

“We need to overcome to players the reputational threat 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” technique, then perhaps Nick Tofiluk, director of guideline at the Gambling Commission, represents the “stick”.

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

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

“The overwhelming majority of sports betting wagering taking location through UK operators is legal and fair,” he states.

“But for some there is the temptation to … corruptly interfere with the outcome of a sporting occasion.

“Such unfaithful has the possible to weaken the stability of a sport, and it likewise damages the business interests of sports betting bodies and sports betting.”

The commission has actually developed an internal Sports Betting Intelligence Unit to receive and disseminate details to sporting authorities, wagering firms and policing authorities.

“Since 2007 we have actually experienced a considerable insight into world of corrupt sports betting,” he says.

“We will signal sports betting of our issues, to help prevent or curtail [prohibited] activity”

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

‘Vulnerabilities’

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

However, Mr Tofiluk states there are still eight ongoing investigations, and that much helpful information has likewise been passed to sports betting authorities.

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

Meanwhile, he states numerous of those wanting to cheat the sports betting wagering market were educated about sports betting and sporting people, and about sports betting operations and the movement of money.

“They seek out the vulnerabilities of these to assist in their enterprises.”

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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