Sport wagering industry looks to protect itself
16 September 2010
By Bill Wilson
Business press reporter, BBC News
sports betting on sport is big service.
Sport England estimates the value of costs on sport-related gambling in England grew from ₤ 1.7 bn in 1985 to ₤ 2.8 bn in 2008.
Which figure is most likely to have actually grown even more, with an approximated ₤ 1bn bet on the World Cup alone in the UK this summertime.
Meanwhile, German research 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 gaming.
But when the stability of events are hit the gaming market suffers, and earnings are put under threat if customers can not bet with self-confidence.
And there can have been few higher-profile sport sports betting stories than those impacting 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 substantial market in world business, 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 against England at Lord's last month.
Three of these gamers have said they will also challenge the corruption charges installed against 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 banned recently for 6 months for stopping working to report the illegal method 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, one of the UK's greatest online sporting exchanges.
"If the sport is perceived as honest, straight and fair that is excellent for wagering companies since people will invest money sports betting with confidence," he says.
"If you take the Pakistan accusations, although unassociated to the UK regulated sports betting industry ... it is not really a positive story for wagering in the UK.
"That is because the perception 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 specialists at a World sports betting Law Report conference into sports betting gambling, the focus needs to be on sportspersons and sportswomen.
As Simon Taylor of the Professional Players' Federation points out: "The only individuals who can repair 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 gamer organisations, such as the Professional Footballers' Association.
He believes that it is not enough to merely have deterrents, sanctions and disciplinary procedures, however that the way to tackle possible issues around gamers is likewise through education.
Mr Taylor states guidelines need to be discussed plainly to gamers with clear examples, and by people they appreciate.
"Through informing players about sports betting you enhance integrity and that is in everybody's interest," he adds.
"If gamers are harder to corrupt then sport will be harder to corrupt."
'Brand damage'
Matt Johnson, head of regulatory legal advice at the Football Association, agrees.
"Prevention is better than treatment, and we also make a point of telling players 'you are going to be caught'."
"It is important that sport is directly, and is seen to be directly," he adds.
"If it loses that then people don't wish to wager, that is not in gambling companies' interests, and it is not in our interests."
He stated that when a great reputation was lost, the damage to a sport was "incalculable".
FA guidelines suggest gamers are not enabled to wager on a competitors in which they are included.
Mr Johnson states players need to be seen not to be cashing in on any inside understanding, which he says could cause "brand name damage" to football and its competitions.
So, even a 2nd Division gamer knocked out of the FA Cup in the autumn can not bank on a Manchester United v Chelsea cup last the following spring.
"We need to overcome to gamers the reputational risk to the video game," he says. "Once self-confidence has actually been harmed it is hard to get it back - mud sticks."
'Overwhelmingly legal'
If this represents the "carrot" approach, then maybe Nick Tofiluk, director of guideline at the Gambling Commission, represents the "stick".
The Gambling Commission was set up under the Gambling Act 2005 to control business sports betting in Great Britain.
An ex-chief constable of West Midlands authorities, Mr Tofiluk has obligation for policing all wagering in the UK apart from spread wagering, which is the remit of the FSA.
"The frustrating bulk of sports betting wagering taking place through UK operators is legal and reasonable," he says.
"But for some there is the temptation to ... corruptly hinder the outcome of a sporting occasion.
"Such cheating has the prospective to weaken the stability of a sport, and it likewise hurts the industrial interests of sports betting bodies and sports betting wagering."
The commission has established an in-house Sports Betting Intelligence Unit to get and disseminate details to sporting authorities, wagering companies and policing authorities.
"Since 2007 we have experienced a considerable insight into world of corrupt sports betting wagering," he states.
"We will notify sports betting of our concerns, to help avoid or reduce [illegal] activity"
In May 2010, the commission also introduced a private telephone hotline for those with details or suspicions.
'Vulnerabilities'
But in a two-and-a-half year duration there has actually 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 continuous examinations, which much helpful information 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 consider stopping a criminal examination "in favour of letting sports betting governing bodies take the lead".
Meanwhile, he states many of those wanting to cheat the sports betting market were well-informed about sports betting and sporting individuals, and about sports betting operations and the movement of money.
"They seek out 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
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