Sport Betting Industry Wants To Protect Itself

Sport sports betting industry wants to secure itself

16 September 2010

By Bill Wilson

Business press reporter, BBC News

sports betting on sport is substantial business.

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

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

But when the integrity of events are hit the gambling industry suffers, and earnings are put under risk if consumers can not bet with self-confidence.

And there can have been couple of higher-profile sport sports betting stories than those impacting cricket and snooker this year.

High-profile

As Sport & Markt’s Gareth Moore observes: “Everyone talks about the sports betting market now.

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

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

Three of these players have actually stated they will also challenge the corruption charges installed against 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 banned last week for six months for failing to report the illegal method to him to throw frames.

There are also 2 other continuing investigations – unrelated to Mr Higgins – into snooker.

‘Honest’

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

“If the sport is viewed as truthful, straight and fair that is great for sports betting companies because people will spend money wagering with self-confidence,” he says.

“If you take the Pakistan accusations, although unrelated to the UK regulated 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 may need to be careful 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 sportspersons and sportswomen.

As Simon Taylor of the Professional Players’ Federation points out: “The only individuals 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’ .

He thinks that it is insufficient to simply have deterrents, sanctions and disciplinary procedures, but that the way to take on prospective problems around players is also through education.

Mr Taylor says rules need to be explained clearly to players with clear examples, and by individuals they appreciate.

“Through informing players about sports betting you reinforce integrity which remains in everyone’s interest,” he adds.

“If gamers are harder to corrupt then sport will be harder to corrupt.”

‘Brand damage’

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

“Prevention is better than cure, and we likewise make a point of informing players ‘you are going to be captured’.”

“It is important that sport is straight, and is seen to be straight,” he includes.

“If it loses that then people do not want to bet, that is not in gaming companies’ interests, and it is not in our interests.”

He stated that as soon as a great reputation was lost, the damage to a sport was “incalculable”.

FA rules suggest players are not enabled to bank on a competition in which they are included.

Mr Johnson states gamers need to be seen not to be cashing in on any inside understanding, which he says could trigger “brand damage” to football and its competitors.

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

“We have to overcome to players the reputational danger to the game,” he says. “Once confidence has been harmed it is difficult to get it back – mud sticks.”

‘Overwhelmingly legal’

If this represents the “carrot” technique, then possibly Nick Tofiluk, director of regulation at the Gambling Commission, represents the “stick”.

The Gambling Commission was established under the Gambling Act 2005 to regulate industrial gambling in Great Britain.

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

“The overwhelming bulk of sports betting wagering taking location through UK operators is legal and reasonable,” he states.

“But for some there is the temptation to … corruptly hinder the outcome of a sporting event.

“Such unfaithful has the potential to weaken the stability of a sport, and it also harms the industrial interests of sports betting bodies and sports betting wagering.”

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

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

“We will inform sports betting of our concerns, to help avoid or reduce [prohibited] activity”

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

‘Vulnerabilities’

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

However, Mr Tofiluk states there are still eight continuous investigations, which much helpful information has likewise been passed to sports betting authorities.

He said that where an examination by a sport governing body was quicker, and more expense reliable, then the commission would consider terminating a criminal examination “in favour of letting sports betting governing bodies take the lead”.

Meanwhile, he states a lot of those aiming 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 business.”

Related internet links

World sports betting Law Report

ICC

Professional Players Federation

Professional Footballers’ Association

The FA

Betfair

Sport & Markt

BLP

Gambling Commission