Sport sports betting market looks to safeguard itself

16 September 2010

By Bill Wilson

Business reporter, BBC News

sports betting on sport is substantial organization.

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

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

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

But when the integrity of occasions are struck the gambling market suffers, and revenues are put under danger if consumers can not wager with self-confidence.

And there can have been few higher-profile sport wagering stories than those impacting cricket and snooker this year.

High-profile

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

"Not only is it a substantial market in world service, it is one that is now on the front pages of newspapers."

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

Three of these players have 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 champ John Higgins was cleared of match-fixing allegations, however was banned recently for six months for failing to report the prohibited technique to him to throw frames.

There are likewise 2 other continuing examinations - unrelated 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 perceived as sincere, straight and fair that benefits sports betting companies due to the fact that people will spend money wagering with confidence," he states.

"If you take the Pakistan claims, although unassociated to the UK regulated wagering market ... it is not really a favorable story for wagering 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 avoid future scandals?

According to experts at a World sports betting Law Report conference into sports betting, the focus has to be on sportsmen and sportswomen.

As Simon Taylor of the Professional Players' Federation points out: "The only individuals 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 thinks that it is not enough to merely have deterrents, sanctions and disciplinary procedures, but that the way to tackle prospective concerns around players is likewise through education.

Mr Taylor states guidelines need to be discussed plainly to gamers with clear examples, and by people they appreciate.

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

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

'Brand damage'

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

"Prevention is much better than remedy, and we likewise make a point of telling 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 individuals don't want to wager, that is not in sports betting companies' interests, and it is not in our interests."

He stated that when a good credibility was lost, the damage to a sport was "enormous".

FA guidelines indicate gamers are not allowed to bet on a competitors in which they are involved.

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

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 have to get over to gamers the reputational danger to the game," he says. "Once confidence has been damaged it is difficult to get it back - mud sticks."

'Overwhelmingly legal'

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

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

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

"The frustrating majority of sports betting wagering occurring through UK operators is legal and reasonable," he says.

"But for some there is the temptation to ... corruptly disrupt the outcome of a sporting event.
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"Such unfaithful has the possible to weaken the integrity of a sport, and it likewise harms the industrial interests of sports betting bodies and sports betting wagering."

The commission has developed an internal Sports Betting Intelligence Unit to receive and disseminate information to sporting authorities, sports betting firms and policing authorities.

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

"We will signal sports betting of our issues, to help avoid or cut [prohibited] 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 period there has been simply one criminal prosecution, a 24-year-old man who was cautioned for cheating in relation to greyhound racing.

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

He stated that where an examination by a sport governing body was quicker, and more expense effective, then the commission would consider stopping a criminal examination "in favour of letting sports betting governing bodies take the lead".
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Meanwhile, he states many of those seeking to cheat the sports betting industry were educated about sports betting and sporting people, and about sports betting operations and the movement of cash.

"They look for the 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
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Gambling Commission

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