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Sport betting market seeks to protect itself
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16 September 2010

By Bill Wilson

Business press reporter, BBC News

Betting on sport is substantial service.

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

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

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

But when the stability of occasions are hit the sports betting market suffers, and revenues are put under hazard if clients 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 gambling market now.

"Not just is it a substantial market in world company, it is one that is now on the front pages of papers."

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

Three of these gamers have actually said they will also challenge the corruption charges mounted against 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, however was prohibited last week for 6 months for failing to report the illegal approach to him to throw frames.

There are likewise two other continuing examinations - not associated to Mr Higgins - into snooker.

'Honest'

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

"If the sport is viewed as sincere, straight and reasonable that benefits betting firms because individuals will spend money wagering with self-confidence," he says.

"If you take the Pakistan allegations, although unrelated to the UK controlled sports betting industry ... it is not actually a positive 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 prevent future scandals?

According to experts 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 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 gamer organisations, such as the Professional Footballers' Association.

He thinks that it is inadequate to merely have deterrents, sanctions and disciplinary treatments, however that the method to deal with possible issues around players is also through education.

Mr Taylor says rules require to be explained clearly to players with clear examples, and by people they appreciate.

"Through informing players about sports betting you strengthen stability which is in everybody's interest," he adds.

"If players 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 better than remedy, and we likewise make a point of informing gamers 'you are going to be caught'."

"It is essential that sport is directly, and is seen to be directly," he includes.

"If it loses that then people don't want to bet, that is not in betting firms' interests, and it is not in our interests."

He stated that when an excellent track record was lost, the damage to a sport was "enormous".

FA rules suggest gamers are not permitted to bank on a competitors in which they are involved.

Mr Johnson says players have to be seen not to be capitalizing 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 get over to gamers the reputational threat to the video game," he states. "Once self-confidence has been damaged it is hard to get it back - mud sticks."

'Overwhelmingly legal'

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

The Gambling Commission was established under the Gambling Act 2005 to control business 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 place through UK operators is legal and reasonable," he says.

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

"Such cheating has the potential to weaken the integrity of a sport, and it likewise damages the commercial interests of sports betting bodies and sports betting wagering."

The commission has developed an in-house Sports Betting Intelligence Unit to receive and distribute info to sporting authorities, wagering firms and policing authorities.

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

"We will inform sports betting of our issues, to help avoid or cut [unlawful] activity"

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

'Vulnerabilities'

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

However, Mr Tofiluk says there are still 8 ongoing examinations, and that much beneficial details has actually also been passed to sports betting authorities.

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

Meanwhile, he says many of those wanting to cheat the sports betting industry were educated about sports betting and sporting individuals, and about wagering operations and the movement of cash.

"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
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