Sport wagering industry aims to protect itself

16 September 2010

By Bill Wilson

Business reporter, BBC News

sports betting on sport is big business.

Sport England approximates the worth 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 approximated ₤ 1bn bet on the World Cup alone in the UK this summer.

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

But when the integrity of occasions are hit the gambling industry 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.
bit.ly
High-profile

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

"Not just 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 cops over spot-fixing allegations associating with a test versus England at Lord's last month.

Three of these players have said they will also challenge the corruption charges installed against 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, but was prohibited recently for 6 months for failing to report the illegal approach to him to toss frames.

There are likewise 2 other continuing examinations - not related to Mr Higgins - into snooker.

'Honest'

David O'Reilly is legal counsel for Betfair, among the UK's biggest online sporting exchanges.
bet9ja.com
"If the sport is viewed as truthful, straight and reasonable that is good for wagering companies due to the fact that individuals will spend cash sports betting with self-confidence," he states.

"If you take the Pakistan accusations, although unrelated to the UK controlled wagering industry ... it is not truly a positive story for wagering in the UK.
bit.ly
"That is due to the fact that the understanding is that 'cricket is now something we might need to be careful about'."
bet9ja.com
'Education'

So what can be done to prevent future scandals?

According to specialists at a World sports betting Law Report conference into sports betting, the focus needs to be on sportspersons and sportswomen.

As Simon Taylor of the Professional Players' Federation points out: "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 merely have deterrents, sanctions and disciplinary procedures, but that the way to take on possible problems around gamers is likewise through education.

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

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

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

'Brand damage'

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

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

"It is crucial that sport is straight, and is seen to be straight," he includes.
bit.ly
"If it loses that then individuals don't wish to bet, that is not in gambling companies' interests, and it is not in our interests."

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

FA rules suggest players are not enabled to bank on a competitors in which they are involved.

Mr Johnson says gamers need to be seen not to be cashing in on any inside knowledge, which he says could trigger "brand damage" to football and its competitors.

So, even a Second Division player knocked out of the FA Cup in the fall can not bank on a Manchester United v Chelsea the following spring.
bet9ja.com
"We have to overcome to players the reputational risk to the game," he states. "Once self-confidence has been harmed it is difficult to get it back - mud sticks."

'Overwhelmingly legal'

If this represents the "carrot" technique, then maybe Nick Tofiluk, director of policy at the Gambling Commission, represents the "stick".
bet9ja.com
The Gambling Commission was set up under the Gambling Act 2005 to control commercial gambling in Great Britain.

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

"The frustrating majority of sports betting taking location through UK operators is legal and fair," he says.

"But for some there is the temptation to ... corruptly disrupt the outcome of a sporting occasion.

"Such unfaithful has the possible to weaken the integrity of a sport, and it likewise hurts the business interests of sports betting bodies and sports betting wagering."

The commission has developed an in-house Sports Betting Intelligence Unit to receive and disseminate info to sporting authorities, sports betting companies and policing authorities.

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

"We will signal sports betting of our concerns, to assist avoid or cut [prohibited] activity"

In May 2010, the commission likewise introduced a confidential telephone hotline for those with information or suspicions.

'Vulnerabilities'

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

However, Mr Tofiluk says there are still 8 ongoing examinations, which much useful info has likewise been passed to sports betting authorities.

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

Meanwhile, he says a lot of those wanting to cheat the sports betting wagering 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 assist 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