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Sport sports betting market looks to protect itself

16 September 2010

By Bill Wilson

Business press reporter, BBC News

sports betting on sport is huge organization.

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.

And that figure is most likely to have grown even more, with an estimated ₤ 1bn bet on the World Cup alone in the UK this summer.

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

But when the integrity of occasions are struck the gambling market suffers, and incomes are put under hazard if customers can not bet 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 substantial 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 allegations connecting to 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 champion John Higgins was cleared of match-fixing accusations, however was prohibited recently for six months for failing to report the illegal method to him to toss frames.

There are likewise two other continuing investigations - not associated 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 honest, straight and reasonable that is good for betting companies since people will spend money sports betting with confidence," he states.

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

"That is due to the fact that the perception is that 'cricket is now something we may have to take care about'."

'Education'

So what can be done to avoid 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 points out: "The only people who can repair a match are the competitors or the referee."

His organisation represents guys and ladies 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 merely have deterrents, sanctions and procedures, but that the method to tackle possible concerns around players is likewise through education.

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

"Through educating gamers about sports betting wagering you enhance stability and that is in everyone's interest," he adds.

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

'Brand damage'

Matt Johnson, head of regulatory legal recommendations at the Football Association, agrees.

"Prevention is much better than remedy, 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 do not wish to wager, that is not in gambling firms' interests, and it is not in our interests."

He said that as soon as a great track record was lost, the damage to a sport was "enormous".

FA guidelines mean players are not allowed to bank on a competition in which they are included.

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

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

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

'Overwhelmingly legal'

If this represents the "carrot" method, 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 gambling in Great Britain.

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

"The frustrating bulk of sports betting wagering taking location through UK operators is legal and fair," he states.

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

"Such cheating has the potential to undermine the integrity of a sport, and it also 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 get and disseminate details to sporting authorities, wagering companies and policing authorities.

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

"We will inform sports betting of our issues, to assist avoid or reduce [prohibited] activity"

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

'Vulnerabilities'

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

However, Mr Tofiluk says there are still 8 ongoing investigations, which much beneficial info 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 think about ceasing a criminal examination "in favour of letting sports betting governing bodies take the lead".

Meanwhile, he says many of those looking to cheat the sports betting industry were experienced about sports betting and sporting people, and about sports betting operations and the movement of money.

"They look for the vulnerabilities of these to assist in their enterprises."

Related web 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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