Sport wagering industry looks to secure itself

16 September 2010

By Bill Wilson

Business press reporter, BBC News

on sport is big company.
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Sport England approximates the worth 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 actually grown even more, with an estimated ₤ 1bn bet on the World Cup alone in the UK this summertime.

Meanwhile, German research study 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 betting industry suffers, and profits are put under risk if customers can not bet with self-confidence.

And there can have been couple of 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 gambling market now.

"Not just is it a substantial market in world company, it is one that is now on the front pages of newspapers."
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Four Pakistan cricketers have actually been questioned by cops over spot-fixing claims relating to a test versus England at Lord's last month.

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

Meanwhile, three-times snooker world champion John Higgins was cleared of match-fixing accusations, however was prohibited recently for six months for stopping working to report the illegal method to him to toss frames.

There are also two other continuing examinations - not associated to Mr Higgins - into snooker.

'Honest'

David O'Reilly is legal counsel for Betfair, one of the UK's most significant online sporting exchanges.

"If the sport is perceived as honest, straight and reasonable that is excellent for wagering companies since people will spend cash betting with confidence," he states.

"If you take the Pakistan claims, although unrelated to the UK controlled wagering market ... it is not truly a favorable story for wagering in the UK.

"That is due to the fact that the perception is that 'cricket is now something we might need 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 needs to be on sportspersons and sportswomen.

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 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 not adequate to merely have deterrents, sanctions and disciplinary treatments, however that the method to tackle prospective problems around players is likewise through education.

Mr Taylor says rules require to be explained plainly to players with clear examples, and by individuals they respect.

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

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

'Brand damage'

Matt Johnson, head of regulative legal guidance at the Football Association, agrees.

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

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

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

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

FA guidelines suggest players are not allowed to bet on a competition in which they are involved.

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

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

"We need to overcome to players the reputational risk to the game," he states. "Once self-confidence has actually been harmed it is difficult 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, represents the "stick".

The Gambling Commission was established under the Gambling Act 2005 to regulate commercial gaming in Great Britain.

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

"The frustrating majority of sports betting taking location through UK operators is legal and fair," he states.
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"But for some there is the temptation to ... corruptly hinder the result of a sporting occasion.

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

The commission has actually developed an in-house Sports Betting Intelligence Unit to receive and share information to sporting authorities, sports betting firms and policing authorities.
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"Since 2007 we have actually experienced a significant insight into world of corrupt sports betting wagering," he states.
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"We will notify sports betting of our issues, to assist prevent or cut [unlawful] activity"

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

'Vulnerabilities'

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

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

He said that where an examination by a sport governing body was quicker, and more expense efficient, 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 aiming to cheat the sports betting 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 assist in their business."

Related internet links

World sports betting Law Report

ICC

Professional Players Federation

Professional Footballers' Association

The FA

Betfair

Sport & Markt

BLP
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Gambling Commission

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