Sport Betting Industry Looks To Protect Itself

Sport wagering industry looks to safeguard itself

16 September 2010

By Bill Wilson

Business reporter, BBC News

sports betting on sport is big organization.

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

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

Meanwhile, German research firm Sport & Markt approximates the general international 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 occasions are struck the gambling industry suffers, and incomes are put under danger if customers can not wager with confidence.

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

High-profile

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

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

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

Three of these players have actually stated 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 claims, however was prohibited last week for 6 months for stopping working to report the unlawful technique to him to toss frames.

There are likewise 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 viewed as truthful, straight and reasonable that benefits sports betting companies due to the fact that people will invest cash sports betting with confidence," he states.

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

"That is since the perception is that 'cricket is now something we might need to be careful about'."

'Education'

So what can be done to prevent future scandals?

According to professionals at a World sports betting Law Report conference into sports betting gambling, the focus needs 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 competitors 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 not adequate to merely have deterrents, sanctions and disciplinary treatments, however that the method to tackle possible problems around players is also through education.

Mr Taylor states guidelines require to be discussed plainly to players with clear examples, and by individuals they respect.

"Through educating players about sports betting you reinforce integrity and that remains in everybody's interest," he includes.

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

'Brand damage'

Matt Johnson, head of regulative legal suggestions at the Football Association, concurs.

"Prevention is better than remedy, 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 straight," he includes.

"If it loses that then people do not wish to bet, that is not in gaming companies' interests, and it is not in our interests."

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

FA rules imply gamers are not allowed to wager 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 states could trigger "brand name damage" to football and its competitions.

So, even a 2nd 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 players the reputational danger to the game," he states. "Once confidence has actually been harmed it is tough to get it back - mud sticks."

'Overwhelmingly legal'

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

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

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

"The frustrating bulk of sports betting wagering happening through UK operators is legal and reasonable," he says.

"But for some there is the temptation to ... corruptly hinder the outcome of a sporting event.

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

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

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

"We will of our concerns, to assist prevent or cut [unlawful] activity"

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

'Vulnerabilities'

But in a two-and-a-half year period there has actually been simply one prosecution, a 24-year-old man who was cautioned for cheating in relation to greyhound racing.

However, Mr Tofiluk states there are still 8 ongoing examinations, which much beneficial information has also been passed to sports betting authorities.

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

Meanwhile, he says much of those looking to cheat the sports betting industry were knowledgeable 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 help in their enterprises."

Related web links

World sports betting Law Report

ICC

Professional Players Federation

Professional Footballers' Association

The FA

Betfair

Sport & Markt

BLP

Gambling Commission