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Sport sports betting market looks to safeguard itself

16 September 2010
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By Bill Wilson

Business reporter, BBC News

sports betting on sport is big organization.

Sport England approximates 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 actually grown even more, with an estimated ₤ 1bn bet on the World Cup alone in the UK this summer.

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

But when the integrity of events are struck the gaming industry suffers, and revenues are put under danger if consumers can not bet with self-confidence.

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

Four Pakistan cricketers have been questioned by cops over spot-fixing accusations connecting to a test versus England at Lord's last month.

Three of these players have actually said they will also 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, however was prohibited last week for 6 months for failing to report the illegal method to him to toss frames.

There are likewise two other continuing examinations - not associated 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 fair that is great for wagering companies since individuals will spend money betting with self-confidence," he states.

"If you take the Pakistan accusations, although unassociated to the UK managed wagering market ... it is not really a positive story for betting in the UK.

"That is since 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 has to be on sportsmen and sportswomen.

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

His organisation represents guys and females in 15 sports betting in the UK, being an umbrella organisation for all gamer organisations, such as the Professional Footballers' Association.

He believes that it is insufficient to simply have deterrents, sanctions and disciplinary procedures, but that the way to deal with prospective issues around gamers is also through education.

Mr Taylor says rules need to be discussed plainly to gamers with clear examples, and by people they respect.

"Through educating players about sports betting you strengthen stability and that remains in everyone's interest," he adds.

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

'Brand damage'

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

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

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

"If it loses that then people don't want to wager, that is not in sports betting firms' interests, and it is not in our interests."

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

FA rules suggest players are not permitted to bank on a competitors in which they are included.

Mr Johnson says gamers have to be seen not to be capitalizing any inside understanding, which he states might trigger "brand name damage" to football and its competitors.

So, even a Second Division player knocked out of the FA Cup in the autumn can not bank on a Manchester United v Chelsea cup last the following spring.

"We need to overcome to gamers the reputational danger to the video game," he states. "Once confidence has been damaged 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 manage business gaming in Great Britain.

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

"The frustrating majority of sports betting wagering happening through UK operators is legal and fair," he states.

"But for some there is the temptation to ... corruptly disrupt the outcome of a sporting event.

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

The commission has actually developed an internal Sports Betting Intelligence Unit to receive and disseminate details to sporting authorities, wagering companies and policing authorities.

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

"We will notify sports betting of our issues, to help prevent or curtail [prohibited] activity"

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

'Vulnerabilities'

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

However, Mr Tofiluk states there are still 8 continuous investigations, which much helpful info 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 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 market were knowledgeable about sports betting and sporting individuals, and about wagering operations and the motion of cash.

"They seek out the vulnerabilities of these to help in their business."

Related internet links

World sports betting Law Report

ICC

Professional Players Federation

Professional Footballers' Association

The FA

Betfair

Sport & Markt
bit.ly
BLP

Gambling Commission
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