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Sport wagering market seeks to secure itself

16 September 2010

By Bill Wilson

Business press reporter, BBC News

on sport is substantial service.

Sport England estimates the worth of costs on sport-related sports betting in England grew from ₤ 1.7 bn in 1985 to ₤ 2.8 bn in 2008.

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

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

But when the integrity of occasions are struck the gaming industry suffers, and earnings are put under threat if customers can not bet with confidence.

And there can have been couple of 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 market now.

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

Four Pakistan cricketers have actually been questioned by authorities over spot-fixing claims relating to a test against England at Lord's last month.

Three of these gamers 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 accusations, however was banned recently for six months for stopping working to report the unlawful method to him to toss frames.

There are likewise 2 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 perceived as truthful, straight and fair that benefits sports betting firms since individuals will invest cash wagering with confidence," he states.

"If you take the Pakistan allegations, although unrelated to the UK regulated sports betting industry ... it is not actually a positive story for sports betting in the UK.

"That is due to the fact that the understanding is that 'cricket is now something we might have to beware 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 gambling, the focus has to be on sportsmen and sportswomen.

As Simon Taylor of the Professional Players' Federation explains: "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 gamer organisations, such as the Professional Footballers' Association.

He thinks that it is not enough to simply have deterrents, sanctions and disciplinary treatments, but that the method to take on potential issues around players is also through education.

Mr Taylor says guidelines need to be described plainly to gamers with clear examples, and by individuals they respect.

"Through informing players about sports betting you strengthen integrity which is in everybody's interest," he adds.

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

Matt Johnson, head of regulative legal suggestions at the Football Association, concurs.

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

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

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

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

FA guidelines suggest gamers are not allowed to bet on a competitors in which they are included.

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

So, even a 2nd Division gamer knocked 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 get over to gamers the reputational risk to the video game," he says. "Once confidence has actually been harmed it is hard to get it back - mud sticks."
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'Overwhelmingly legal'

If this represents the "carrot" technique, then perhaps Nick Tofiluk, director of guideline at the Gambling Commission, represents the "stick".

The Gambling Commission was set up under the Gambling Act 2005 to manage business sports betting in Great Britain.

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

"The frustrating bulk of sports betting happening through UK operators is legal and reasonable," he says.
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"But for some there is the temptation to ... corruptly interfere with the result of a sporting event.

"Such cheating 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 receive and disseminate info to sporting authorities, sports betting companies and policing authorities.

"Since 2007 we have experienced a considerable insight into world of corrupt sports betting," he states.
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"We will alert sports betting of our concerns, to assist prevent or curtail [prohibited] activity"

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

'Vulnerabilities'

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

However, Mr Tofiluk says there are still eight continuous examinations, and that much useful info has actually likewise been passed to sports betting authorities.

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

Meanwhile, he states a number of those aiming to cheat the sports betting industry were educated about sports betting and sporting individuals, and about sports betting operations and the movement of cash.

"They seek out 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
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BLP

Gambling Commission
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