Sport Betting Industry Seeks To Protect Itself

Sport sports betting industry looks to safeguard itself

16 September 2010

By Bill Wilson

Business reporter, BBC News

sports betting on sport is huge company.

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

And that figure is 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 company Sport & Markt approximates the total international gambling market will deserve 263bn euros (₤ 220bn) by 2012, with much of that driven by web and sports betting gambling.

But when the stability of occasions are struck the gambling industry suffers, and earnings are put under risk if consumers can not wager with self-confidence.

And there can have been few higher-profile sport sports betting stories than those affecting 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 company, it is one that is now on the front pages of newspapers.”

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

Three of these players have actually stated 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 allegations, however was prohibited last week for 6 months for failing to report the illegal method to him to toss frames.

There are likewise two other continuing investigations – not related to Mr Higgins – into snooker.

‘Honest’

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

“If the sport is viewed as sincere, straight and fair that is great for sports betting companies since individuals will spend money sports betting with confidence,” he says.

“If you take the Pakistan allegations, although unassociated to the UK managed wagering industry … it is not actually a positive story for wagering in the UK.

“That is since the understanding is that ‘cricket is now something we may 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, the focus needs to be on sportsmen and sportswomen.

As Simon Taylor of the Professional Players’ Federation explains: “The only people who can fix 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 believes that it is not sufficient to simply have deterrents, sanctions and disciplinary treatments, but that the way to take on possible problems around players is also through education.

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

“Through educating gamers about sports betting wagering you reinforce stability and that remains in everybody’s interest,” he adds.

“If players are more difficult to corrupt then sport will be more difficult to corrupt.”

‘Brand damage’

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

“Prevention is better than treatment, and we also make a point of telling gamers ‘you are going to be captured’.”

“It is vital that sport is straight, and is seen to be directly,” he adds.

“If it loses that then people don’t want to wager, that is not in gambling companies’ interests, and it is not in our interests.”

He said that once an excellent credibility was lost, the damage to a sport was “incalculable”.

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

Mr Johnson states gamers have actually to be seen not to be cashing in on any inside understanding, which he states could trigger “brand name damage” to football and its competitors.

So, even a Second Division player out of the FA Cup in the autumn can not bet on a Manchester United v Chelsea cup last the following spring.

“We have to overcome to gamers the reputational threat 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” approach, then possibly Nick Tofiluk, director of regulation at the Gambling Commission, represents the “stick”.

The Gambling Commission was set up under the Gambling Act 2005 to manage commercial gambling in Great Britain.

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

“The overwhelming bulk of sports betting occurring through UK operators is legal and fair,” he says.

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

“Such unfaithful has the possible to weaken the stability of a sport, and it also hurts the industrial interests of sports betting bodies and sports betting wagering.”

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

“Since 2007 we have actually experienced a considerable insight into world of corrupt sports betting wagering,” he states.

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

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

‘Vulnerabilities’

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

However, Mr Tofiluk states there are still eight ongoing examinations, which much beneficial info has also been passed to sports betting authorities.

He stated that where an investigation by a sport governing body was quicker, and more expense effective, then the commission would think about discontinuing a criminal examination “in favour of letting sports betting governing bodies take the lead”.

Meanwhile, he states a number of those seeking to cheat the sports betting wagering market were knowledgeable about sports betting and sporting people, and about sports betting 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

Gambling Commission