Sport Betting Industry Aims To Protect Itself

Sport wagering market seeks to secure itself

16 September 2010

By Bill Wilson

Business press reporter, BBC News

sports betting on sport is big company.

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

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

Meanwhile, German research study company Sport & Markt approximates the overall international gambling 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 events are hit the gambling market suffers, and revenues are put under hazard if customers can not bet with self-confidence.

And there can have been few 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 considerable market in world company, it is one that is now on the front pages of newspapers.”

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

Three of these gamers have stated they will likewise challenge the corruption charges mounted versus the trio by the sport governing body the International Cricket Council.

Meanwhile, three-times snooker world champ John Higgins was cleared of match-fixing allegations, however was banned recently for six months for stopping working to report the prohibited approach to him to throw 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 fair that is excellent for wagering companies due to the fact that individuals will invest money wagering with self-confidence,” he states.

“If you take the Pakistan accusations, although to the UK regulated wagering 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 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 points out: “The only people who can repair a match are the rivals or the referee.”

His organisation represents guys and ladies 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 procedures, however that the method to tackle possible issues around gamers is also through education.

Mr Taylor says rules need to be explained plainly to gamers with clear examples, and by people they respect.

“Through educating gamers about sports betting wagering you strengthen integrity and that remains in everyone’s interest,” he includes.

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

‘Brand damage’

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

“Prevention is better than cure, and we also make a point of informing players ‘you are going to be caught’.”

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

“If it loses that then people do not wish to bet, that is not in gambling companies’ interests, and it is not in our interests.”

He said that once a great reputation was lost, the damage to a sport was “enormous”.

FA rules indicate players are not permitted to bet on a competitors in which they are included.

Mr Johnson states gamers have actually to be seen not to be cashing in on any inside knowledge, which he states might trigger “brand damage” to football and its competitions.

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

“We need to get over to gamers the reputational risk to the video game,” he says. “Once self-confidence has actually been damaged it is difficult 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 set up under the Gambling Act 2005 to manage business gaming in Great Britain.

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

“The overwhelming majority 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 event.

“Such unfaithful has the prospective to undermine the integrity of a sport, and it likewise harms the industrial interests of sports betting bodies and sports betting wagering.”

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

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

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

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

‘Vulnerabilities’

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

However, Mr Tofiluk says there are still eight ongoing investigations, which much useful details has likewise been passed to sports betting authorities.

He stated that where an investigation 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 governing bodies take the lead”.

Meanwhile, he states a lot of those aiming to cheat the sports betting wagering market were knowledgeable about sports betting and sporting people, and about wagering operations and the motion 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

The FA

Betfair

Sport & Markt

BLP

Gambling Commission