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Sport sports betting industry looks to safeguard itself

16 September 2010

By Bill Wilson

Business press reporter, BBC News

sports betting on sport is huge service.

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

Which figure is likely to have actually grown further, with an estimated ₤ 1bn bet on the World Cup alone in the UK this summer.

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

But when the integrity of events are hit the gaming industry suffers, and profits are put under threat if clients can not bet with confidence.

And there can have been couple of 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 market now.

"Not only 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 claims connecting to a test versus England at Lord's last month.

Three of these gamers have actually said 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 allegations, however was prohibited last week for 6 months for failing to report the prohibited approach to him to toss frames.

There are also 2 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 sincere, straight and fair that is great for wagering companies because people will spend money wagering with confidence," he states.

"If you take the Pakistan allegations, although unassociated to the UK regulated sports betting industry ... it is not actually a positive story for wagering in the UK.

"That is because the perception is that 'cricket is now something we might have to take care about'."

'Education'

So what can be done to avoid future scandals?

According to experts 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 fix a match are the competitors or the referee."

His organisation represents males and ladies 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 not sufficient to merely have deterrents, sanctions and disciplinary procedures, but that the method to tackle potential issues around gamers is also through education.

Mr Taylor states rules need to be explained clearly to players with clear examples, and by people they appreciate.

"Through educating gamers about sports betting wagering you enhance integrity and that is in everyone's interest," he includes.

"If players are more difficult 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 telling gamers '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 individuals don't wish to bet, that is not in gambling companies' interests, and it is not in our interests."

He stated that when a great reputation was lost, the damage to a sport was "incalculable".

FA rules imply gamers are not allowed to bank on a competition in which they are involved.

Mr Johnson says players have actually to be seen not to be capitalizing any inside knowledge, which he says might trigger "brand name damage" to football and its competitors.

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

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

'Overwhelmingly legal'

If this represents the "carrot" technique, then maybe Nick Tofiluk, director of regulation at the Commission, represents the "stick".

The Gambling Commission was set up under the Gambling Act 2005 to regulate business sports betting in Great Britain.

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

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

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

"Such cheating has the potential to undermine the integrity of a sport, and it also hurts the industrial interests of sports betting bodies and sports betting."

The commission has established an internal Sports Betting Intelligence Unit to receive and disseminate information to sporting authorities, sports betting companies and policing authorities.

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

"We will alert sports betting of our concerns, to help prevent or reduce [illegal] activity"

In May 2010, the commission also presented a personal telephone hotline for those with information or suspicions.

'Vulnerabilities'

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

However, Mr Tofiluk says there are still 8 continuous investigations, which much useful info has also 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 consider ceasing a criminal examination "in favour of letting sports betting governing bodies take the lead".

Meanwhile, he states much of those looking to cheat the sports betting market were well-informed about sports betting and sporting individuals, and about sports betting operations and the motion of cash.

"They look for out 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

Gambling Commission

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