Sport sports betting market looks to safeguard itself

16 September 2010
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By Bill Wilson

Business reporter, BBC News

Betting on sport is big business.

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.

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

But when the stability of events are struck the gaming market suffers, and earnings are put under risk if customers can not bet with self-confidence.

And there can have been few higher-profile sport sports betting 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 just is it a considerable market in world company, it is one that is now on the front pages of newspapers."

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

Three of these players have 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 champ John Higgins was cleared of match-fixing allegations, however was prohibited last week for 6 months for stopping working to report the prohibited method 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, among the UK's most significant online sporting exchanges.

"If the sport is viewed as truthful, straight and reasonable that benefits wagering firms due to the fact that individuals will invest money wagering with confidence," he states.

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

"That is since the understanding is that 'cricket is now something we may have to beware 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 mentions: "The only individuals who can fix a match are the competitors 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.
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He thinks that it is inadequate to simply have deterrents, sanctions and disciplinary treatments, however that the method to tackle prospective concerns around players is likewise through education.
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Mr Taylor says rules require to be described clearly to gamers with clear examples, and by individuals they appreciate.

"Through educating players about sports betting wagering you enhance stability which is in everybody'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 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 caught'."

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

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

He said that once an excellent track record was lost, the damage to a sport was "incalculable".

FA rules indicate players are not allowed to bank on a competitors in which they are involved.

Mr Johnson states gamers need to be seen not to be cashing in on any inside knowledge, which he states could cause "brand name damage" to football and its competitors.

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

"We have to get over to players the reputational danger to the game," he says. "Once self-confidence has actually been harmed it is difficult to get it back - mud sticks."
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'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 set up under the Gambling Act 2005 to manage industrial sports betting in Great Britain.

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

"The overwhelming bulk of sports betting taking place through UK operators is legal and reasonable," he states.

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

"Such cheating has the prospective to weaken the stability of a sport, and it also harms the business interests of sports betting bodies and sports betting."

The commission has actually developed an in-house Sports Betting Intelligence Unit to get and disseminate details to sporting authorities, sports betting firms and policing authorities.

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

"We will inform sports betting of our issues, to assist prevent or reduce [prohibited] activity"

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

'Vulnerabilities'

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

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

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

Meanwhile, he states much of those looking to cheat the sports betting wagering industry were knowledgeable about sports betting and sporting individuals, and about wagering operations and the motion of money.

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

Related internet links

World sports betting Law Report

ICC

Professional Players Federation

Professional Footballers' Association

The FA

Betfair

Sport & Markt

BLP

Gambling Commission