Sport wagering industry looks to safeguard itself
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16 September 2010

By Bill Wilson

Business press reporter, BBC News

Betting on sport is huge service.

Sport England estimates 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 likely to have actually grown further, with an approximated ₤ 1bn bet on the World Cup alone in the UK this summer season.

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

But when the stability of occasions are hit the gaming market suffers, and profits are put under danger if clients can not wager with confidence.

And there can have been couple of higher-profile sport wagering stories than those affecting cricket and snooker this year.

High-profile

As Sport & Markt's Gareth Moore observes: "Everyone discuss the sports betting market now.

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

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

Three of these players have said they will also 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 claims, but was banned recently for 6 months for failing to report the illegal approach to him to toss 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 biggest online sporting exchanges.

"If the sport is perceived as sincere, straight and fair that benefits betting companies since individuals will spend money wagering with self-confidence," he states.

"If you take the Pakistan accusations, although unrelated to the UK regulated sports betting market ... it is not truly a positive story for betting in the UK.

"That is due to the fact that the perception is that 'cricket is now something we may have to take care about'."

'Education'

So what can be done to prevent future scandals?

According to specialists 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 individuals who can fix a match are the competitors or the referee."
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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 simply have deterrents, sanctions and disciplinary procedures, however that the way to deal with potential problems around gamers is likewise through education.

Mr Taylor states rules need to be explained clearly to players with clear examples, and by people they respect.

"Through educating gamers about sports betting wagering you strengthen stability which is in everyone's interest," he includes.

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

'Brand damage'

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

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

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

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

He stated that once a good track record was lost, the damage to a sport was "incalculable".

FA guidelines mean players are not permitted to bet on a competitors in which they are involved.

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

So, even a Second Division gamer 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 players the reputational danger to the video game," he states. "Once self-confidence has been damaged it is difficult to get it back - mud sticks."

'Overwhelmingly legal'

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

The Gambling Commission was established under the Gambling Act 2005 to manage industrial betting in Great Britain.

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

"The overwhelming bulk of sports betting wagering happening through UK operators is legal and fair," he says.

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

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

The commission has developed an internal Sports Betting Intelligence Unit to get and share info to sporting authorities, wagering firms and policing authorities.

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

"We will inform sports betting of our issues, to help prevent or curtail [prohibited] activity"

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

'Vulnerabilities'

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

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

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

Meanwhile, he says a number of those aiming to cheat the sports betting wagering market were well-informed about sports betting and sporting people, and about wagering operations and the motion of cash.

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

Related web links

World sports betting Law Report

ICC

Professional Players Federation

Professional Footballers' Association

The FA

Betfair

Sport & Markt

BLP

Gambling Commission
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