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Sport betting market seeks to protect itself

16 September 2010
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By Bill Wilson

Business reporter, BBC News

sports betting on sport is huge business.

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

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

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

But when the stability of occasions are hit the sports betting market suffers, and profits are put under danger if clients can not bet 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 talks about the sports betting gambling market now.

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

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

Three of these players have actually stated 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 accusations, however was banned recently for six months for stopping working to report the illegal method to him to throw frames.

There are likewise 2 other continuing investigations - unrelated to Mr Higgins - into snooker.

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

"If the sport is viewed as honest, straight and fair that benefits sports betting firms since individuals will invest money sports betting with confidence," he says.

"If you take the Pakistan allegations, although unassociated to the UK controlled sports betting industry ... it is not actually a positive story for wagering in the UK.

"That is due to the fact that the understanding is that 'cricket is now something we may 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 women 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 not adequate to simply have deterrents, sanctions and disciplinary procedures, however that the way to tackle possible problems around players is likewise through education.

Mr Taylor says guidelines require to be described plainly to players with clear examples, and by people they appreciate.

"Through educating players about sports betting you enhance integrity which is in everybody'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 recommendations at the Football Association, concurs.

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

"It is necessary that sport is straight, and is seen to be straight," he adds.

"If it loses that then individuals don't want to bet, that is not in sports betting 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 guidelines mean players are not enabled to wager on a competitors in which they are involved.

Mr Johnson says players have actually to be seen not to be cashing in on any inside understanding, which he states could cause "brand name damage" to football and its competitors.

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

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

'Overwhelmingly legal'

If this represents the "carrot" technique, 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 regulate business gambling in Great Britain.

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

"The frustrating majority of sports betting happening through UK operators is legal and fair," he says.
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"But for some there is the temptation to ... corruptly hinder the result of a sporting occasion.

"Such cheating has the prospective to undermine the stability of a sport, and it likewise hurts the commercial interests of sports betting bodies and sports betting."

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

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

"We will notify sports betting of our issues, to help prevent or reduce [illegal] activity"

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

'Vulnerabilities'

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

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

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

Meanwhile, he states many of those seeking to cheat the sports betting wagering market were well-informed about sports betting and sporting people, and about sports betting operations and the movement of cash.

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

Related internet links

World sports betting Law Report

ICC

Professional Players Federation

Professional Footballers' Association
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The FA

Betfair

Sport & Markt

BLP

Gambling Commission

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