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Sport wagering industry wants to protect itself
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16 September 2010
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By Bill Wilson

Business reporter, BBC News

sports betting on sport is big company.

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.

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

Meanwhile, German research study company Sport & Markt estimates the general international gaming 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 struck the gaming market suffers, and earnings are put under danger if clients can not wager 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 speak about the sports betting gambling market now.

"Not only is it a significant market in world business, it is one that is now on the front pages of papers."

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

Three of these players have actually stated 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 champion John Higgins was cleared of match-fixing claims, however was prohibited recently for six months for stopping working to report the unlawful method to him to toss frames.

There are likewise 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.
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"If the sport is perceived as honest, straight and fair that is good for wagering companies since people will invest money wagering with confidence," he says.

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

"That is because the perception is that 'cricket is now something we might need to take care 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, the focus needs to be on sportspersons and sportswomen.

As Simon Taylor of the Professional Players' Federation mentions: "The only people who can fix 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 insufficient to merely have deterrents, sanctions and disciplinary treatments, however that the way to tackle possible issues around gamers is also through education.

Mr Taylor states guidelines need to be discussed plainly to players with clear examples, and by individuals they respect.

"Through informing gamers about sports betting wagering you reinforce integrity which 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 regulative legal advice at the Football Association, concurs.

"Prevention is much better than cure, and we likewise make a point of telling gamers '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 people do not desire to bet, that is not in gambling companies' interests, and it is not in our interests."

He stated that when an excellent credibility was lost, the damage to a sport was "enormous".

FA guidelines indicate players are not enabled to bet on a competitors in which they are involved.

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

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

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

'Overwhelmingly legal'

If this represents the "carrot" technique, 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 police, Mr Tofiluk has obligation for policing all wagering in the UK apart from spread sports betting, which is the remit of the FSA.

"The overwhelming majority of sports betting wagering happening through UK operators is legal and reasonable," he says.

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

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

The commission has established an in-house Sports Betting Intelligence Unit to get and share 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 alert sports betting of our concerns, to help prevent or reduce [unlawful] 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 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 examinations, which much beneficial details has actually also 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 stopping a criminal investigation "in favour of letting sports betting governing bodies take the lead".

Meanwhile, he states a number of those wanting to cheat the sports betting market were experienced about sports betting and sporting individuals, and about sports betting operations and the movement of cash.

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

Related web links

World sports betting Law Report

ICC

Professional Players Federation

Professional Footballers' Association

The FA

Betfair

Sport & Markt
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BLP

Gambling Commission
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