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Sport wagering industry aims to secure itself

16 September 2010

By Bill Wilson

Business reporter, BBC News

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

And that figure is most likely to have grown further, with an estimated ₤ 1bn bet on the World Cup alone in the UK this summer season.
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Meanwhile, German research company Sport & Markt approximates the overall worldwide gaming market will deserve 263bn euros (₤ 220bn) by 2012, with much of that driven by web and sports betting gaming.

But when the integrity of events are struck the gambling market suffers, and profits are put under danger if customers can not wager with 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 discuss the sports betting gambling market now.

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

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

Three of these players have stated 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, but was prohibited recently for 6 months for failing to report the prohibited method to him to throw frames.

There are likewise 2 other continuing investigations - not associated to Mr Higgins - into snooker.
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'Honest'

David O'Reilly is legal counsel for Betfair, among the UK's biggest online sporting exchanges.
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"If the sport is perceived as sincere, straight and fair that benefits wagering firms due to the fact that people will invest money sports betting with self-confidence," he says.

"If you take the Pakistan allegations, although unrelated to the UK regulated wagering industry ... it is not really a favorable story for sports betting in the UK.

"That is since the perception is that 'cricket is now something we may have to be mindful 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 people who can fix a match are the rivals or the referee."

His organisation represents men 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 simply have deterrents, sanctions and disciplinary procedures, but that the method to tackle possible problems around gamers is also through education.

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

"Through educating gamers about sports betting wagering you strengthen integrity which 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 regulatory legal guidance at the Football Association, agrees.

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

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

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

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

FA guidelines imply gamers are not allowed to bank on a competitors in which they are involved.

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

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

"We have to overcome to players the reputational danger to the game," he says. "Once self-confidence has been damaged it is hard to get it back - mud sticks."

'Overwhelmingly legal'

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

The Gambling Commission was established under the Gambling Act 2005 to manage commercial gambling in Great Britain.

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

"The overwhelming majority 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 occasion.

"Such cheating has the potential to weaken the stability of a sport, and it also hurts the industrial interests of sports betting bodies and sports betting wagering."

The commission has established an in-house Sports Betting Intelligence Unit to receive and distribute info to sporting authorities, sports betting 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 concerns, to assist prevent or cut [illegal] activity"

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

'Vulnerabilities'

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

However, Mr Tofiluk states there are still 8 continuous investigations, which much beneficial information has likewise been passed to sports betting authorities.

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

Meanwhile, he says a number of those seeking to cheat the sports betting wagering industry were educated about sports betting and sporting individuals, and about sports betting operations and the movement of cash.

"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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