Sport Betting Industry Looks To Protect Itself

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Sport betting market looks to safeguard itself

16 September 2010

By Bill Wilson

Business press reporter, BBC News

Betting on sport is huge business.

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

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

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

But when the stability of occasions are hit the gambling market suffers, and profits are put under risk if customers can not wager 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 speak about 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 actually 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 likewise challenge the corruption charges mounted versus 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 last week for 6 months for failing to report the unlawful technique to him to toss frames.

There are also 2 other continuing investigations - not associated to Mr Higgins - into snooker.

'Honest'

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

"If the sport is perceived as honest, straight and fair that is excellent for sports betting firms because people will spend cash sports betting with confidence," he says.

"If you take the Pakistan accusations, although unassociated to the UK controlled sports betting industry ... it is not actually a favorable story for sports betting in the UK.

"That is since the perception is that 'cricket is now something we might need 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 has to be on sportsmen and sportswomen.

As Simon Taylor of the Professional Players' Federation explains: "The only individuals who can fix 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 gamer organisations, such as the Professional Footballers' Association.

He believes that it is not adequate to merely have deterrents, sanctions and disciplinary procedures, however that the way to tackle possible problems around gamers is also through education.

Mr Taylor says guidelines require to be described clearly to gamers with clear examples, and by people they appreciate.

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

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

'Brand damage'

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

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

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

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

He said that once a great track record was lost, the damage to a sport was "enormous".

FA guidelines indicate gamers are not allowed to bet on a competition in which they are included.

Mr Johnson says players need to be seen not to be capitalizing any inside understanding, which he says could cause "brand damage" to football and its competitors.

So, even a Second Division player 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 get over to gamers the reputational risk to the video game," he states. "Once self-confidence has been harmed it is tough to get it back - mud sticks."

'Overwhelmingly legal'

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

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

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

"The frustrating majority of sports betting wagering occurring through UK operators is legal and fair," he states.

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

"Such unfaithful has the potential to weaken the stability of a sport, and it likewise harms the business interests of sports betting bodies and sports betting."

The commission has developed an internal Sports Betting Intelligence Unit to receive and distribute details to sporting authorities, sports betting companies and policing authorities.

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

"We will alert sports betting of our concerns, to help avoid or cut [unlawful] activity"

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

'Vulnerabilities'

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

However, Mr Tofiluk says there are still 8 continuous investigations, which much beneficial info has likewise been passed to sports betting authorities.

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

Meanwhile, he says many of those looking to cheat the sports betting wagering market were well-informed about sports betting and sporting people, and about sports betting operations and the movement of cash.

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