Sport Betting Industry Aims To Protect Itself

Sport betting market looks to secure itself

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16 September 2010

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By Bill Wilson

Business press reporter, BBC News

sports betting on sport is big organization.

Sport England estimates 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 actually grown further, with an estimated ₤ 1bn bet on the World Cup alone in the UK this summertime.

Meanwhile, German research company Sport & Markt estimates the overall international gambling market will be worth 263bn euros (₤ 220bn) by 2012, with much of that driven by web and sports betting gambling.

But when the stability of events are struck the sports betting market suffers, and profits are put under risk if customers 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 speak about the sports betting market now.

"Not only is it a significant market in world organization, it is one that is now on the front pages of newspapers."

Four Pakistan cricketers have been questioned by police over spot-fixing accusations associating with a test against England at Lord's last month.

Three of these players have actually stated 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 champion John Higgins was cleared of match-fixing claims, however was prohibited recently for six months for failing to report the prohibited 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 most significant online sporting exchanges.

"If the sport is perceived as honest, straight and fair that is great for wagering firms because individuals will invest money betting with confidence," he states.

"If you take the Pakistan accusations, although unrelated to the UK controlled betting market ... 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 might have to take care 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 has to be on sportspersons and sportswomen.

As Simon Taylor of the Professional Players' Federation mentions: "The only people 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 thinks that it is inadequate to simply have deterrents, sanctions and disciplinary procedures, however that the method to deal with prospective issues around gamers is likewise through education.

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

"Through informing gamers about sports betting wagering you reinforce integrity which is in everyone's interest," he adds.

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

'Brand damage'

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

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

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

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

He stated that as soon as a good reputation was lost, the damage to a sport was "incalculable".

FA guidelines imply players are not enabled to bet on a competitors in which they are included.

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

So, even a 2nd 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 need to overcome to gamers the reputational risk to the game," he states. "Once confidence has been harmed it is difficult to get it back - mud sticks."

'Overwhelmingly legal'

If this represents the "carrot" method, then maybe Nick Tofiluk, director of regulation at the Gambling Commission, represents the "stick".

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

An ex-chief constable of West Midlands authorities, Mr Tofiluk has responsibility 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 hinder the outcome of a sporting occasion.

"Such unfaithful has the potential to undermine the integrity of a sport, and it likewise damages the business interests of sports betting bodies and sports betting wagering."

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

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

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

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

'Vulnerabilities'

But in a two-and-a-half year period there has actually 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 8 continuous examinations, and that much beneficial details has actually likewise been passed to sports betting authorities.

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

Meanwhile, he states many of those looking to cheat the sports betting industry were experienced about sports betting and sporting individuals, and about sports betting operations and the motion of cash.

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