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industry seeks to protect itself

16 September 2010

By Bill Wilson

Business reporter, BBC News

Betting on sport is big business.

Sport England estimates the value of costs on sport-related gambling 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 approximated ₤ 1bn bet on the World Cup alone in the UK this summertime.

Meanwhile, German research company Sport & Markt estimates the total international betting market will deserve 263bn euros (₤ 220bn) by 2012, with much of that driven by internet and sports betting.

But when the integrity of events are hit the sports betting industry suffers, and profits are put under hazard if clients can not wager 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 speak about the sports betting market now.

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

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

Three of these gamers have actually 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 allegations, but was banned last week for six months for stopping working to report the illegal technique to him to throw frames.

There are likewise 2 other continuing investigations - not related to Mr Higgins - into snooker.

'Honest'

David O'Reilly is legal counsel for Betfair, among the UK's greatest online sporting exchanges.

"If the sport is perceived as truthful, straight and fair that is good for wagering companies since individuals will invest cash wagering with confidence," he states.

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

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

As Simon Taylor of the Professional Players' Federation points out: "The only people who can repair 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 player organisations, such as the Professional Footballers' Association.

He believes that it is not enough to merely have deterrents, sanctions and disciplinary treatments, however that the way to deal with prospective concerns around players is likewise through education.

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

"Through informing players about sports betting you reinforce stability and that is in everyone's interest," he adds.

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

'Brand damage'
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Matt Johnson, head of regulative legal advice at the Football Association, agrees.

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

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

"If it loses that then people do not desire to wager, that is not in gaming firms' interests, and it is not in our interests."

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

FA rules imply players are not permitted to bank on a competitors in which they are involved.

Mr Johnson says players need to be seen not to be capitalizing any inside understanding, which he states could trigger "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 bank on a Manchester United v Chelsea cup final the following spring.

"We have to get over to gamers the reputational danger to the video game," he states. "Once self-confidence has been damaged it is tough to get it back - mud sticks."

'Overwhelmingly legal'

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

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

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

"The overwhelming bulk of sports betting happening through UK operators is legal and fair," he says.

"But for some there is the temptation to ... corruptly interfere with the result of a sporting occasion.

"Such unfaithful has the potential to undermine the stability of a sport, and it likewise hurts the industrial interests of sports betting bodies and sports betting wagering."

The commission has developed an internal Sports Betting Intelligence Unit to get and distribute info to sporting authorities, betting firms and policing authorities.

"Since 2007 we have experienced a considerable insight into world of corrupt sports betting," he says.
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"We will notify sports betting of our issues, to help avoid or curtail [unlawful] activity"

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

'Vulnerabilities'

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

However, Mr Tofiluk says there are still 8 ongoing examinations, and that much helpful details has likewise been passed to sports betting authorities.

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

Meanwhile, he states a lot of those looking to cheat the sports betting industry were educated about sports betting and sporting individuals, and about 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
bet9ja.com
Professional Footballers' Association

The FA

Betfair

Sport & Markt

BLP

Gambling Commission