Sport sports betting market aims to safeguard itself

16 September 2010
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By Bill Wilson

Business press reporter, BBC News

sports betting on sport is big company.

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

And that figure is most likely to have grown further, with an approximated ₤ 1bn bet on the World Cup alone in the UK this summer season.

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

But when the stability of events are hit the gambling industry suffers, and incomes are put under hazard if customers can not bet with self-confidence.

And there can have been couple of higher-profile sport wagering 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 just is it a substantial market in world service, it is one that is now on the front pages of newspapers."

Four Pakistan cricketers have actually been questioned by police over spot-fixing claims relating to a test versus England at Lord's last month.

Three of these players have actually said they will likewise challenge the corruption charges installed 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, but was banned recently for 6 months for failing to report the illegal technique to him to toss frames.

There are also two other continuing investigations - unrelated to Mr Higgins - into snooker.

'Honest'

David O'Reilly is legal counsel for Betfair, among the UK's greatest online sporting exchanges.

"If the sport is viewed as honest, straight and reasonable that is good for sports betting firms due to the fact that individuals will invest cash sports betting with self-confidence," he states.

"If you take the Pakistan claims, although unassociated to the UK managed sports betting industry ... it is not really a favorable story for sports betting in the UK.

"That is since the perception is that 'cricket is now something we might need to take care 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 sportsmen 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 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 simply have deterrents, sanctions and disciplinary treatments, however that the method to take on prospective issues around players is also through education.

Mr Taylor says guidelines need to be explained plainly to gamers with clear examples, and by individuals they appreciate.

"Through informing gamers about sports betting you reinforce integrity and that remains in everyone's interest," he includes.

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

'Brand damage'

Matt Johnson, head of regulatory legal recommendations at the Football Association, concurs.

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

"It is crucial that sport is directly, 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 said that when an excellent reputation was lost, the damage to a sport was "incalculable".

FA rules imply players are not enabled to bank on a competition in which they are involved.

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

So, even a 2nd Division gamer 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 players the reputational risk to the game," he states. "Once self-confidence has actually been harmed it is tough to get it back - mud sticks."

'Overwhelmingly legal'

If this represents the "carrot" method, then perhaps Nick Tofiluk, director of policy at the Gambling Commission, represents the "stick".
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The Gambling Commission was set up under the Gambling Act 2005 to control industrial gaming in Great Britain.

An ex-chief constable of West Midlands cops, Mr Tofiluk has duty 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 happening through UK operators is legal and reasonable," he states.

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

"Such cheating has the potential to undermine the stability of a sport, and it also harms the business interests of sports betting bodies and sports betting wagering."

The commission has established an internal Sports Betting Intelligence Unit to get and share information to sporting authorities, wagering companies and policing authorities.

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

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

In May 2010, the commission likewise presented a personal 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 man who was cautioned for unfaithful in relation to greyhound racing.

However, Mr Tofiluk says there are still 8 continuous investigations, which much helpful info has actually also 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 think about discontinuing a criminal examination "in favour of letting sports betting governing bodies take the lead".
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Meanwhile, he says much of those wanting to cheat the sports betting market were experienced about sports betting and sporting individuals, and about wagering operations and the movement of money.

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

Related internet 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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