Sport Betting Industry Wants To Protect Itself

Sport wagering industry wants to safeguard itself
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16 September 2010


By Bill Wilson


Business press reporter, BBC News


sports betting on sport is big business.


Sport England the value 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 likely to have grown further, with an approximated ₤ 1bn bet on the World Cup alone in the UK this summer.


Meanwhile, German research company Sport & Markt estimates the general worldwide 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 struck the gambling market suffers, and revenues are put under hazard if customers can not wager with self-confidence.


And there can have been few higher-profile sport wagering stories than those impacting cricket and snooker this year.


High-profile
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As Sport & Markt's Gareth Moore observes: "Everyone talks about the sports betting market now.


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


Four Pakistan cricketers have been questioned by authorities over spot-fixing claims associating with a test versus England at Lord's last month.


Three of these players have said they will also challenge the corruption charges mounted 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 banned recently for six months for failing to report the prohibited approach to him to toss frames.


There are also two other continuing investigations - unrelated to Mr Higgins - into snooker.


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


"If the sport is perceived as truthful, straight and fair that benefits sports betting companies because individuals will invest money sports betting with self-confidence," he states.


"If you take the Pakistan claims, although unrelated to the UK regulated sports betting market ... it is not actually a favorable story for sports betting in the UK.


"That is because the perception is that 'cricket is now something we may need to take care about'."


'Education'


So what can be done to prevent future scandals?


According to experts at a World sports betting Law Report conference into sports betting, the focus needs to be on sportsmen and sportswomen.


As Simon Taylor of the Professional Players' Federation mentions: "The only people 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 thinks that it is inadequate to simply have deterrents, sanctions and disciplinary procedures, but that the way to tackle prospective problems around gamers is also through education.


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


"Through informing gamers about sports betting you strengthen stability and that remains in everyone's interest," he adds.


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


'Brand damage'
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Matt Johnson, head of regulatory legal guidance at the Football Association, agrees.


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


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


"If it loses that then people do not wish to bet, that is not in gambling firms' interests, and it is not in our interests."


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


FA guidelines imply players are not permitted to bank on a competition in which they are involved.


Mr Johnson says players need to be seen not to be cashing in on any inside knowledge, which he states could cause "brand name damage" to football and its competitions.


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


"We need to get over to gamers the reputational threat to the game," he says. "Once self-confidence has been damaged it is tough to get it back - mud sticks."


'Overwhelmingly legal'


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


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


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


"The frustrating majority 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 outcome of a sporting event.


"Such cheating has the prospective to weaken the integrity of a sport, and it likewise damages the commercial interests of sports betting bodies and sports betting."


The commission has developed an in-house Sports Betting Intelligence Unit to receive and share info to sporting authorities, wagering companies and policing authorities.


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


"We will alert sports betting of our concerns, to help prevent or cut [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 period there has actually been simply 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 investigations, which much useful info has likewise been passed to sports betting authorities.


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


Meanwhile, he states a number of those aiming to cheat the sports betting wagering industry were knowledgeable about sports betting and sporting individuals, and about wagering operations and the motion of cash.
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"They look for the vulnerabilities of these to help in their business."


Related web links


World sports betting Law Report


ICC


Professional Players Federation


Professional Footballers' Association


The FA


Betfair
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Sport & Markt


BLP


Gambling Commission


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