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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 huge company.

Sport England approximates the value of costs on sport-related gambling 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 estimated ₤ 1bn bet on the World Cup alone in the UK this summertime.

Meanwhile, German research study company Sport & Markt approximates the general international gaming market will be worth 263bn euros (₤ 220bn) by 2012, with much of that driven by web and sports betting.

But when the integrity of events are struck the gaming market suffers, and earnings are put under risk if consumers can not bet with confidence.

And there can have been few 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 substantial market in world organization, it is one that is now on the front pages of newspapers."

Four Pakistan cricketers have actually been questioned by authorities over spot-fixing allegations associating with a test versus England at Lord's last month.

Three of these gamers have stated they will likewise 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, but was banned recently for six months for failing to report the illegal approach to him to throw frames.

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

'Honest'

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

"If the sport is viewed as honest, straight and reasonable that is excellent for sports betting companies due to the fact that people will invest money betting with confidence," he says.

"If you take the Pakistan accusations, although unrelated to the UK controlled sports betting market ... it is not actually a favorable story for betting in the UK.

"That is since the perception is that 'cricket is now something we might have to be careful 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, the focus has to be on sportspersons and sportswomen.

As Simon Taylor of the Professional Players' Federation explains: "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 procedures, however that the way to deal with potential issues around players is likewise through education.

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

"Through educating gamers about sports betting you enhance integrity and that is in everybody's interest," he includes.

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

'Brand damage'

Matt Johnson, head of regulative legal advice at the Football Association, concurs.

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

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

"If it loses that then people do not desire to wager, that is not in sports betting firms' interests, and it is not in our interests."

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

FA guidelines indicate gamers are not enabled to bank on a competitors in which they are included.

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

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

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

'Overwhelmingly legal'

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

The Gambling Commission was established under the Gambling Act 2005 to control business gaming in Great Britain.

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

"The overwhelming bulk of sports betting happening through UK operators is legal and reasonable," he states.

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

"Such unfaithful has the possible to undermine the stability of a sport, and it likewise damages the business interests of sports betting bodies and sports betting."

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

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

"We will alert sports betting of our issues, to assist avoid or reduce [unlawful] activity"

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

'Vulnerabilities'

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

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

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

Meanwhile, he says much of those seeking to cheat the sports betting industry were experienced about sports betting and sporting individuals, and about betting operations and the motion of money.

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

Related web links

World sports betting Law Report

ICC

Professional Players Federation

Professional Footballers' Association

The FA

Betfair

Sport & Markt
bit.ly
BLP

Gambling Commission