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Sport wagering market wants to protect itself
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16 September 2010
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By Bill Wilson

Business reporter, BBC News

sports betting on sport is huge company.

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

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

But when the stability of events are hit the gambling industry suffers, and earnings are put under threat if clients can not wager with 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 discuss the sports betting gambling market now.

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

Four Pakistan cricketers have been questioned by cops over spot-fixing accusations associating with a test against England at Lord's last month.

Three of these players have actually stated they will also challenge the corruption charges mounted 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 accusations, however was banned last week for 6 months for failing to report the unlawful approach to him to throw frames.

There are also 2 other continuing investigations - 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 perceived as sincere, straight and reasonable that benefits wagering firms because people will invest money sports betting with confidence," he says.

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

"That is because the understanding 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 specialists at a World sports betting Law Report conference into sports betting, the focus has to be on sportspersons and sportswomen.
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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 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 inadequate to merely have deterrents, sanctions and disciplinary treatments, however that the method to deal with prospective concerns around players is also through education.

Mr Taylor says guidelines need to be explained clearly to gamers with clear examples, and by individuals they appreciate.

"Through informing players about sports betting you enhance integrity and that remains in everybody's interest," he adds.

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

'Brand damage'

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

"Prevention is better than remedy, and we also make a point of telling players 'you are going to be caught'."

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

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

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

FA rules suggest gamers are not allowed to wager on a competitors in which they are included.

Mr Johnson states players need to be seen not to be cashing in on any inside understanding, which he says might trigger "brand name damage" to football and its competitions.

So, even a 2nd Division gamer knocked out of the FA Cup in the fall can not bank on a Manchester United v Chelsea cup final the following spring.

"We have to overcome to gamers the reputational risk to the game," he states. "Once self-confidence has actually been harmed it is hard to get it back - mud sticks."

'Overwhelmingly legal'

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

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

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

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

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

"Such cheating has the possible to weaken the integrity of a sport, and it likewise damages the commercial interests of sports betting bodies and sports betting."

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

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

"We will signal sports betting of our concerns, to help avoid or curtail [unlawful] 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 been just one criminal prosecution, a 24-year-old guy who was warned for cheating in relation to greyhound racing.

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

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

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

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

Related web 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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