Sport Betting Industry Seeks To Protect Itself

Sport sports betting market seeks to safeguard itself

16 September 2010

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By Bill Wilson

Business reporter, BBC News

sports betting on sport is big 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.

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

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

But when the stability of occasions are hit the gaming market suffers, and profits are put under danger if consumers can not bet with self-confidence.

And there can have been few higher-profile sport wagering 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.

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"Not just is it a considerable market in world business, it is one that is now on the front pages of papers."

Four Pakistan cricketers have actually been questioned by police over spot-fixing allegations relating to a test against England at Lord's last month.

Three of these gamers have actually stated they will likewise challenge the corruption charges installed against the trio by the sport governing body the International Cricket Council.

Meanwhile, three-times snooker world champ John Higgins was cleared of match-fixing claims, however was banned recently for six months for failing to report the unlawful approach to him to toss frames.

There are likewise 2 other continuing investigations - not associated 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 good for wagering firms because people will spend cash sports betting with self-confidence," he says.

"If you take the Pakistan accusations, although unassociated to the UK managed sports betting market ... it is not really a favorable story for wagering in the UK.

"That is due to the fact that the understanding is that 'cricket is now something we might have to beware about'."

'Education'

So what can be done to prevent future scandals?

According to specialists 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 mentions: "The only individuals who can fix a match are the rivals or the referee."

His organisation represents guys and females 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 insufficient to merely have deterrents, sanctions and disciplinary treatments, but that the method to take on prospective issues around gamers is likewise through education.

Mr Taylor says rules require to be discussed plainly to players with clear examples, and by people they appreciate.

"Through educating gamers about sports betting wagering you reinforce stability which is in everyone's interest," he includes.

"If players are harder 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 treatment, and we likewise make a point of informing gamers 'you are going to be captured'."

"It is crucial 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 gaming companies' interests, and it is not in our interests."

He stated that as soon as an excellent track record was lost, the damage to a sport was "enormous".

FA rules imply players are not enabled to wager on a competition in which they are involved.

Mr Johnson says gamers have actually to be seen not to be cashing in on any inside knowledge, which he says might cause "brand damage" to football and its competitors.

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 risk to the game," he says. "Once confidence has been harmed it is tough to get it back - mud sticks."

'Overwhelmingly legal'

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

The Gambling Commission was established under the Gambling Act 2005 to control business gaming 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 frustrating bulk of sports betting happening through UK operators is legal and fair," he states.

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

"Such unfaithful has the potential to undermine the stability of a sport, and it likewise hurts the industrial interests of sports betting bodies and sports betting."

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

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

"We will alert sports betting of our issues, to assist prevent or cut [illegal] activity"

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

'Vulnerabilities'

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

However, Mr Tofiluk states there are still 8 continuous examinations, and that much beneficial details has also been passed to sports betting authorities.

He said that where an investigation by a sport governing body was quicker, and more cost efficient, then the commission would consider terminating a criminal examination "in favour of letting sports betting governing bodies take the lead".

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

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