Sport sports betting market seeks to safeguard itself

16 September 2010

By Bill Wilson

Business press reporter, BBC News

sports betting on sport is big company.

Sport England approximates the worth 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 actually grown further, with an approximated ₤ 1bn bet on the World Cup alone in the UK this summer season.

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

But when the integrity of occasions are struck the gambling industry suffers, and profits are put under hazard if clients can not wager with confidence.

And there can have been few higher-profile sport wagering stories than those impacting cricket and snooker this year.
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High-profile

As Sport & Markt's Gareth Moore observes: "Everyone talks about the sports betting gambling market now.

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

Four Pakistan cricketers have actually been questioned by police over spot-fixing accusations associating with a test versus 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, however was prohibited recently for 6 months for stopping working to report the prohibited technique to him to throw frames.

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

'Honest'

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

"If the sport is viewed as truthful, straight and fair that is great for wagering firms because individuals will spend cash sports betting with self-confidence," he states.

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

"That is because the perception is that 'cricket is now something we may have to beware about'."

'Education'

So what can be done to avoid future scandals?

According to specialists at a World sports betting Law Report conference into sports betting gambling, the focus has to be on sportsmen and sportswomen.

As Simon Taylor of the Professional Players' Federation points out: "The only people who can repair a match are the rivals or the referee."

His organisation represents men and women 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 not sufficient to merely have deterrents, sanctions and disciplinary treatments, but that the way to deal with prospective concerns around gamers is likewise through education.

Mr Taylor says rules need to be explained plainly to players with clear examples, and by individuals they appreciate.

"Through informing players about sports betting you enhance stability and that remains in everyone's interest," he includes.

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

'Brand damage'

Matt Johnson, head of regulatory legal advice at the Football Association, concurs.

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

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

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

He said that as soon as a good credibility was lost, the damage to a sport was "incalculable".

FA guidelines suggest players are not enabled to bank on a competitors in which they are included.

Mr Johnson says gamers need to be seen not to be capitalizing any inside knowledge, which he states might trigger "brand damage" to football and its competitions.

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

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

'Overwhelmingly legal'
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If this represents the "carrot" approach, then possibly Nick Tofiluk, director of policy at the Gambling Commission, represents the "stick".

The Gambling Commission was established under the Gambling Act 2005 to control commercial gaming in Great Britain.

An ex-chief constable of West Midlands police, Mr Tofiluk has responsibility for policing all sports betting in the UK apart from spread wagering, 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 interfere with the outcome of a sporting occasion.

"Such cheating has the possible to undermine the of a sport, and it likewise hurts the business interests of sports betting bodies and sports betting wagering."

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 experienced a significant insight into world of corrupt sports betting," he says.

"We will signal sports betting of our concerns, to help prevent or curtail [unlawful] activity"

In May 2010, the commission likewise presented a private 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 man who was warned for cheating in relation to greyhound racing.

However, Mr Tofiluk says there are still eight continuous examinations, which much helpful 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 effective, then the commission would consider discontinuing a criminal examination "in favour of letting sports betting governing bodies take the lead".

Meanwhile, he states numerous of those aiming to cheat the sports betting wagering market were experienced about sports betting and sporting people, and about sports betting operations and the motion of money.

"They look for 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
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Gambling Commission

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