Sport Betting Industry Wants To Protect Itself

Sport betting industry looks to secure itself

16 September 2010

By Bill Wilson

Business press reporter, BBC News

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sports betting on sport is big service.

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

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

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

But when the integrity of events are hit the gambling industry suffers, and revenues are put under risk if clients can not wager with confidence.

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

High-profile

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

"Not only is it a considerable 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 accusations connecting to a test against England at Lord's last month.

Three of these players have 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, however was banned recently for six months for failing to report the prohibited technique to him to throw frames.

There are also two 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 companies due to the fact that people will spend cash wagering with confidence," he says.

"If you take the Pakistan allegations, although unrelated to the UK regulated wagering market ... it is not truly 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 be cautious about'."

'Education'

So what can be done to avoid future scandals?

According to professionals 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 mentions: "The only people who can fix a match are the rivals or the referee."

His organisation represents guys and women in 15 sports betting in the UK, being an umbrella organisation for all gamer organisations, such as the Professional Footballers' Association.

He believes that it is not enough to simply have deterrents, sanctions and disciplinary treatments, but that the method to deal with prospective issues around gamers is likewise through education.

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

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

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

'Brand damage'

Matt Johnson, head of regulative legal advice at the Football Association, agrees.

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

"It is crucial that sport is directly, and is seen to be straight," 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 stated that when a good reputation was lost, the damage to a sport was "incalculable".

FA rules mean gamers are not enabled to bank on a competitors in which they are involved.

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

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

"We need to overcome to players the reputational risk to the game," he states. "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 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 regulate commercial betting in Great Britain.

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

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

"But for some there is the temptation to ... corruptly disrupt the result of a sporting event.

"Such unfaithful has the potential to undermine the stability of a sport, and it likewise harms the industrial interests of sports betting bodies and sports betting."

The commission has actually established an internal Sports Betting Intelligence Unit to receive and disseminate info to sporting authorities, wagering companies and policing authorities.

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

"We will notify sports betting of our concerns, to help avoid or curtail [prohibited] activity"

In May 2010, the commission also presented a confidential telephone hotline for those with info 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 says there are still 8 continuous examinations, and that much beneficial details has actually likewise been passed to sports betting authorities.

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

Meanwhile, he states much of those aiming to cheat the sports betting market were experienced about sports betting and sporting people, and about betting operations and the motion of cash.

"They look for the vulnerabilities of these to assist in their business."