Sport sports betting industry wants to safeguard itself

16 September 2010

By Bill Wilson

Business press reporter, BBC News

Betting on sport is substantial organization.

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

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

Meanwhile, German research company Sport & Markt approximates the overall international sports betting market will deserve 263bn euros (₤ 220bn) by 2012, with much of that driven by internet and sports betting gaming.
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But when the stability of occasions are hit the gambling market suffers, and revenues are put under danger if consumers can not bet with 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 just 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 police over spot-fixing accusations connecting to a test against England at Lord's last month.

Three of these gamers have said 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, but was banned recently for six months for failing to report the unlawful method to him to throw frames.

There are also 2 other continuing examinations - unrelated to Mr Higgins - into snooker.

'Honest'

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

"If the sport is viewed as honest, straight and reasonable that is great for sports betting companies because individuals will spend money betting with self-confidence," he says.

"If you take the Pakistan claims, although unrelated to the UK regulated sports betting industry ... it is not truly a favorable story for sports betting in the UK.
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"That is since the understanding is that 'cricket is now something we may need to be cautious 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 individuals who can repair a match are the rivals or the referee."

His organisation represents males and ladies 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 inadequate to simply have deterrents, sanctions and disciplinary treatments, but that the method to deal with potential problems around gamers is likewise through education.

Mr Taylor says rules need to be discussed plainly to players with clear examples, and by people they appreciate.

"Through educating players about sports betting you reinforce integrity and that remains in everyone's interest," he adds.

"If gamers are more difficult to corrupt then sport will be more difficult to corrupt."

'Brand damage'
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Matt Johnson, head of regulatory legal recommendations 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 captured'."

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

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

He stated that as soon as a great credibility was lost, the damage to a sport was "enormous".

FA guidelines indicate players are not allowed to bank on a competitors in which they are included.

Mr Johnson states players need to be seen not to be capitalizing any inside knowledge, which he says might 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 bet on a Manchester United v Chelsea cup last the following spring.

"We need to get over to gamers the reputational threat to the game," he says. "Once self-confidence has actually been harmed it is difficult to get it back - mud sticks."

'Overwhelmingly legal'

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

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

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

"The overwhelming majority of sports betting wagering occurring through UK operators is legal and fair," he states.

"But for some there is the temptation to ... corruptly hinder the result of a sporting event.

"Such cheating has the prospective to weaken the stability of a sport, and it likewise damages the business interests of sports betting bodies and sports betting wagering."

The commission has established an in-house Sports Betting Intelligence Unit to get and share details to sporting authorities, sports betting companies and policing authorities.

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

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

In May 2010, the commission likewise presented 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 guy who was warned for cheating in relation to greyhound racing.

However, Mr Tofiluk states there are still 8 continuous examinations, and that much beneficial details has actually likewise been passed to sports betting authorities.

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

Meanwhile, he says a lot of those wanting to cheat the sports betting market were knowledgeable about sports betting and sporting individuals, and about sports betting operations and the movement of cash.

"They seek out the vulnerabilities of these to help in their business."

Related web links

World sports betting Law Report
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ICC

Professional Players Federation

Professional Footballers' Association

The FA

Betfair

Sport & Markt

BLP

Gambling Commission
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