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Sport wagering industry seeks to protect itself
16 September 2010
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By Bill Wilson
Business press reporter, BBC News
sports betting on sport is big service.
Sport England approximates the value 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 actually grown further, with an estimated ₤ 1bn bet on the World Cup alone in the UK this summertime.
Meanwhile, German research study company Sport & Markt approximates the total international gaming market will be worth 263bn euros (₤ 220bn) by 2012, with much of that driven by web and sports betting.
But when the integrity of events are struck the sports betting industry suffers, and revenues are put under hazard if consumers 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
As Sport & Markt's Gareth Moore observes: "Everyone discuss the sports betting market now.
"Not just is it a considerable market in world organization, it is one that is now on the front pages of papers."
Four Pakistan cricketers have been questioned by police over spot-fixing claims associating with a test against England at Lord's last month.
Three of these players have actually said they will likewise 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 stopping working to report the unlawful technique to him to throw frames.
There are likewise two other continuing investigations - unrelated to Mr Higgins - into snooker.
'Honest'
David O'Reilly is legal counsel for Betfair, among the UK's biggest online sporting exchanges.
"If the sport is perceived as honest, straight and reasonable that benefits wagering firms because people will spend money betting with confidence," he states.
"If you take the Pakistan claims, although unrelated to the UK managed wagering market ... it is not actually a positive story for wagering in the UK.
"That is because the perception is that 'cricket is now something we may need 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, 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 gamer organisations, such as the Professional Footballers' Association.
He thinks that it is insufficient to merely have deterrents, sanctions and disciplinary treatments, but that the way to take on potential issues around gamers is likewise through education.
Mr Taylor says guidelines require to be discussed clearly to players with clear examples, and by individuals they respect.
"Through educating players about sports betting you strengthen stability and that is in everyone's interest," he includes.
"If players are harder to corrupt then sport will be more difficult to corrupt."
'Brand damage'
Matt Johnson, head of regulative legal guidance at the Football Association, agrees.
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"Prevention is better than cure, and we likewise make a point of telling gamers 'you are going to be caught'."
"It is vital that sport is directly, and is seen to be directly," he adds.
"If it loses that then individuals do not wish to wager, that is not in sports betting companies' interests, and it is not in our interests."
He said that when a great reputation was lost, the damage to a sport was "enormous".
FA guidelines imply gamers are not allowed to bank on a competition in which they are included.
Mr Johnson says players need to be seen not to be cashing in on any inside understanding, which he says might cause "brand name damage" to football and its competitors.
So, even a Second Division player knocked out of the FA Cup in the fall can not wager on a Manchester United v Chelsea cup final the following spring.
"We need to get over to gamers the reputational threat to the game," he says. "Once self-confidence has actually been damaged it is difficult to get it back - mud sticks."
'Overwhelmingly legal'
If this represents the "carrot" approach, then possibly Nick Tofiluk, director of policy at the Gambling Commission, represents the "stick".
The Gambling Commission was established under the Gambling Act 2005 to manage commercial sports betting in Great Britain.
An ex-chief constable of West Midlands authorities, Mr Tofiluk has responsibility for policing all wagering in the UK apart from spread sports betting, which is the remit of the FSA.
"The overwhelming bulk of sports betting wagering occurring through UK operators is legal and reasonable," he states.
"But for some there is the temptation to ... corruptly hinder the result of a sporting occasion.
"Such cheating has the prospective to undermine the stability of a sport, and it also damages the commercial interests of sports betting bodies and sports betting wagering."
The commission has established an internal Sports Betting Intelligence Unit to receive and share info to sporting authorities, betting firms and policing authorities.
"Since 2007 we have experienced a substantial insight into world of corrupt sports betting," he states.
"We will notify sports betting of our issues, to assist avoid or cut [prohibited] activity"
In May 2010, the commission also introduced a personal telephone hotline for those with info or suspicions.
'Vulnerabilities'
But in a two-and-a-half year duration there has actually been just one prosecution, a 24-year-old male who was warned for unfaithful in relation to greyhound racing.
However, Mr Tofiluk says there are still eight ongoing examinations, and that much helpful info 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 think about 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 market were knowledgeable about sports betting and sporting people, and about sports betting operations and the motion of cash.
"They seek out the vulnerabilities of these to assist in their business."
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Related internet 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