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Sport sports betting industry wants to secure itself

16 September 2010

By Bill Wilson

Business press reporter, BBC News

sports betting on sport is huge organization.

Sport England estimates 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 grown further, with an approximated ₤ 1bn bet on the World Cup alone in the UK this summertime.

Meanwhile, German research study company Sport & Markt approximates the overall worldwide betting 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 hit the gambling market suffers, and earnings are put under threat if consumers can not bet 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 speak about the sports betting gambling market now.

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

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

Three of these players have said they will likewise 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 accusations, but was prohibited recently for 6 months for stopping working to report the prohibited approach to him to toss frames.

There are also two other continuing examinations - unrelated 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 viewed as honest, straight and reasonable that benefits wagering companies due to the fact that individuals will spend cash wagering with confidence," he says.

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

"That is because the understanding is that 'cricket is now something we may need to take care about'."

'Education'

So what can be done to avoid future scandals?
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According to specialists at a World Report conference into sports betting gambling, the focus has to be on sportspersons and sportswomen.

As Simon Taylor of the Professional Players' Federation explains: "The only people who can repair a match are the competitors or the referee."

His organisation represents guys and women 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 treatments, however that the method to take on possible problems around players is also through education.

Mr Taylor states rules need to be explained plainly to players with clear examples, and by people they appreciate.

"Through educating gamers about sports betting wagering you enhance integrity which is in everyone's interest," he includes.

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

'Brand damage'

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

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

"It is imperative that sport is directly, and is seen to be straight," he adds.
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"If it loses that then individuals don't wish to wager, that is not in sports betting firms' interests, and it is not in our interests."

He said that as soon as an excellent credibility was lost, the damage to a sport was "enormous".

FA rules mean players are not allowed to bank on a competition in which they are involved.

Mr Johnson states players need to be seen not to be capitalizing any inside understanding, which he states might trigger "brand name damage" to football and its competitors.
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So, even a Second 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 need to get over to gamers the reputational danger to the game," he says. "Once self-confidence has been damaged it is difficult to get it back - mud sticks."

'Overwhelmingly legal'

If this represents the "carrot" approach, 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 regulate 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 sports betting, which is the remit of the FSA.

"The frustrating bulk of sports betting wagering occurring through UK operators is legal and reasonable," he says.
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"But for some there is the temptation to ... corruptly disrupt the result of a sporting occasion.

"Such cheating has the possible to undermine the integrity of a sport, and it also harms the commercial interests of sports betting bodies and sports betting wagering."

The commission has established an in-house Sports Betting Intelligence Unit to receive and disseminate info to sporting authorities, betting firms and policing authorities.

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

"We will inform sports betting of our concerns, to help avoid or curtail [prohibited] activity"

In May 2010, the commission also introduced a private 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 cheating in relation to greyhound racing.
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However, Mr Tofiluk says there are still 8 ongoing examinations, which much useful information has likewise been passed to sports betting authorities.

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

Meanwhile, he says much of those wanting to cheat the sports betting wagering market were well-informed about sports betting and sporting individuals, and about wagering operations and the motion of cash.

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

Related web links
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World sports betting Law Report

ICC

Professional Players Federation

Professional Footballers' Association

The FA

Betfair

Sport & Markt

BLP

Gambling Commission