Sport wagering market looks to protect itself

16 September 2010

By Bill Wilson

Business press reporter, BBC News
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sports betting on sport is huge business.
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Sport England the worth of spending on sport-related gaming in England grew from ₤ 1.7 bn in 1985 to ₤ 2.8 bn in 2008.

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

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

But when the integrity of events are hit the sports betting market suffers, and revenues are put under hazard if clients can not wager with 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 discuss the sports betting gambling market now.

"Not only is it a substantial market in world business, it is one that is now on the front pages of newspapers."
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Four Pakistan cricketers have actually been questioned by authorities over spot-fixing claims connecting to a test versus England at Lord's last month.

Three of these players have actually said they will likewise 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 allegations, but was banned recently for 6 months for failing to report the unlawful method to him to toss frames.

There are also two other continuing investigations - 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.

"If the sport is viewed as honest, straight and fair that is excellent for wagering firms since people will spend money sports betting with confidence," he states.

"If you take the Pakistan allegations, although unrelated to the UK controlled wagering industry ... it is not really a favorable story for sports betting in the UK.

"That is because the understanding is that 'cricket is now something we may need to beware 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 individuals who can repair 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 merely have deterrents, sanctions and disciplinary treatments, but that the way to take on prospective problems around gamers is also through education.

Mr Taylor says rules need to be described clearly to players with clear examples, and by people they respect.

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

"If players are harder 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, concurs.

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

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

"If it loses that then individuals don't want to wager, that is not in gambling firms' interests, and it is not in our interests."

He stated that when a great credibility was lost, the damage to a sport was "incalculable".

FA guidelines imply players are not enabled to wager on a competition in which they are involved.
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Mr Johnson states players need to be seen not to be capitalizing any inside knowledge, which he states could cause "brand name damage" to football and its competitions.

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 final the following spring.

"We have to overcome to gamers the reputational threat to the video game," he says. "Once confidence has actually been damaged it is hard to get it back - mud sticks."

'Overwhelmingly legal'

If this represents the "carrot" approach, 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 control business gambling in Great Britain.

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

"The frustrating majority of sports betting occurring through UK operators is legal and reasonable," he says.

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

"Such cheating has the possible to weaken the stability of a sport, and it also harms the industrial interests of sports betting bodies and sports betting."

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

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

"We will inform sports betting of our issues, to assist avoid or reduce [unlawful] activity"

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

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

However, Mr Tofiluk states there are still eight ongoing examinations, and that much beneficial info has also been passed to sports betting authorities.

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

Meanwhile, he says many of those looking to cheat the sports betting market were well-informed about sports betting and sporting people, and about sports betting operations and the movement of cash.

"They look for the vulnerabilities of these to help in their enterprises."

Related internet links

World sports betting Law Report

ICC

Professional Players Federation

Professional Footballers' Association

The FA

Betfair

Sport & Markt

BLP

Gambling Commission