Sport wagering industry aims to secure 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 estimates the value of spending on sport-related sports betting in England grew from ₤ 1.7 bn in 1985 to ₤ 2.8 bn in 2008.

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

Meanwhile, German research study firm Sport & Markt approximates 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 integrity of occasions are hit the gambling market suffers, and revenues are put under threat if consumers can not wager with self-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 speak about the sports betting market now.

"Not just is it a significant market in world organization, it is one that is now on the front pages of papers."
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Four Pakistan cricketers have actually been questioned by authorities over spot-fixing allegations relating to a test against England at Lord's last month.

Three of these players have actually stated they will also challenge the corruption charges installed 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 prohibited last week for six months for stopping working to report the unlawful method 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 biggest online sporting exchanges.
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"If the sport is perceived as honest, and reasonable that is excellent for wagering companies since people will spend money sports betting with confidence," he says.

"If you take the Pakistan allegations, although unrelated to the UK managed wagering industry ... it is not really a positive story for wagering in the UK.

"That is because the perception is that 'cricket is now something we might have to beware about'."

'Education'

So what can be done to avoid future scandals?

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

As Simon Taylor of the Professional Players' Federation points out: "The only individuals who can fix a match are the rivals 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 insufficient to merely have deterrents, sanctions and disciplinary treatments, but that the method to take on potential issues around gamers is likewise through education.

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

"Through educating players about sports betting wagering you reinforce stability and that remains in everybody's interest," he includes.

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

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

"Prevention is much better than cure, and we also make a point of informing gamers 'you are going to be caught'."

"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 gaming companies' interests, and it is not in our interests."

He said that once a good reputation was lost, the damage to a sport was "enormous".

FA rules imply gamers are not permitted to bank on a competition in which they are involved.

Mr Johnson states players need to be seen not to be capitalizing any inside knowledge, which he says could trigger "brand damage" to football and its competitors.

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

"We have to get over to players the reputational danger to the game," he says. "Once self-confidence has been harmed it is hard to get it back - mud sticks."

'Overwhelmingly legal'

If this represents the "carrot" approach, then maybe Nick Tofiluk, director of regulation at the Gambling Commission, represents the "stick".
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The Gambling Commission was set up under the Gambling Act 2005 to control commercial sports betting 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 sports betting, which is the remit of the FSA.

"The frustrating majority 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 event.

"Such cheating has the prospective to undermine the integrity of a sport, and it also hurts the industrial interests of sports betting bodies and sports betting."

The commission has actually developed an in-house Sports Betting Intelligence Unit to receive and share details to sporting authorities, sports betting firms and policing authorities.

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

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

In May 2010, the commission also introduced a private telephone hotline for those with information 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 cautioned for unfaithful in relation to greyhound racing.

However, Mr Tofiluk says there are still 8 continuous investigations, and that much helpful information has likewise been passed to sports betting authorities.

He said that where an examination 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 says a lot of those aiming to cheat the sports betting wagering market were well-informed about sports betting and sporting individuals, and about sports betting operations and the movement of cash.

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

Related web links

World sports betting Law Report

ICC

Professional Players Federation

Professional Footballers' Association

The FA

Betfair

Sport & Markt

BLP

Gambling Commission

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