Sport wagering market looks to safeguard itself

16 September 2010

By Bill Wilson

Business reporter, BBC News

Betting on sport is substantial business.

Sport England estimates the value of spending on sport-related gambling in England grew from ₤ 1.7 bn in 1985 to ₤ 2.8 bn in 2008.

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

Meanwhile, German research study firm Sport & Markt approximates the overall international gambling market will deserve 263bn euros (₤ 220bn) by 2012, with much of that driven by internet and sports betting.

But when the integrity of occasions are hit the sports betting market suffers, and revenues are put under danger if customers can not bet with confidence.

And there can have been few higher-profile sport sports 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 just is it a substantial market in world company, it is one that is now on the front pages of newspapers."

Four Pakistan cricketers have actually been questioned by authorities over spot-fixing accusations relating to 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 accusations, but was prohibited last week for 6 months for stopping working to report the illegal technique to him to throw frames.

There are likewise 2 other continuing investigations - unrelated to Mr Higgins - into snooker.

'Honest'

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

"If the sport is perceived as sincere, straight and reasonable that benefits sports betting companies because individuals will invest cash wagering with self-confidence," he says.

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

"That is because the perception is that 'cricket is now something we might need to beware about'."

'Education'

So what can be done to avoid 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 individuals who can fix a match are the competitors 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 insufficient to simply have deterrents, sanctions and disciplinary procedures, but that the way to deal with prospective issues around players is also through education.

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

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

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

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

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

"It is important that sport is directly, and is seen to be straight," he includes.

"If it loses that then individuals do not desire to wager, that is not in gaming companies' 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 rules mean players are not enabled to bank on a competitors in which they are involved.

Mr Johnson states players have actually to be seen not to be capitalizing any inside understanding, which he states could trigger "brand damage" to football and its competitors.

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

"We have to overcome to players the reputational threat to the video game," he says. "Once confidence has been harmed it is difficult to get it back - mud sticks."

'Overwhelmingly legal'

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

The Gambling Commission was established under the Gambling Act 2005 to manage commercial betting in Great Britain.
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An ex-chief constable of West Midlands authorities, Mr Tofiluk has duty 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 place through UK operators is legal and reasonable," he says.

"But for some there is the temptation to ... corruptly hinder the result of a sporting event.

"Such unfaithful has the possible to undermine the integrity of a sport, and it likewise damages the industrial interests of sports betting bodies and sports betting."

The commission has developed an internal Sports Betting Intelligence Unit to get and distribute information to sporting authorities, wagering companies and policing authorities.

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

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

In May 2010, the commission also introduced a personal 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 man who was cautioned for cheating in relation to greyhound racing.

However, Mr Tofiluk states there are still 8 continuous examinations, which much useful details has likewise been passed to sports betting authorities.

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

Meanwhile, he says much of those seeking to cheat the sports betting wagering industry were knowledgeable about sports betting and sporting people, and about sports betting operations and the movement of money.

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

World sports betting Law Report
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ICC

Professional Players Federation

Professional Footballers' Association

The FA

Betfair

Sport & Markt

BLP

Gambling Commission

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