Sport wagering industry wants to safeguard itself

16 September 2010

By Bill Wilson

Business reporter, BBC News

sports betting on sport is big service.
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Sport England approximates the worth of costs on sport-related gaming in England grew from ₤ 1.7 bn in 1985 to ₤ 2.8 bn in 2008.

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

Meanwhile, German research study company Sport & Markt approximates the overall worldwide gambling market will be worth 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 sports betting industry suffers, and revenues are put under threat if consumers can not wager with self-confidence.

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

High-profile

As Sport & Markt's Gareth Moore observes: "Everyone discuss 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 cops over spot-fixing allegations connecting to a test versus England at Lord's last month.

Three of these players have stated they will also challenge the corruption charges installed versus the trio by the sport governing body the International Cricket Council.

Meanwhile, three-times snooker world champion John Higgins was cleared of match-fixing accusations, but was banned last week for 6 months for failing to report the illegal method to him to toss frames.

There are likewise 2 other continuing investigations - unrelated to Mr Higgins - into snooker.

'Honest'

David O'Reilly is legal counsel for Betfair, among the UK's most significant online sporting exchanges.

"If the sport is perceived as honest, straight and fair that is excellent for wagering firms since individuals will spend money wagering with confidence," he states.

"If you take the Pakistan claims, although unassociated to the UK controlled wagering market ... it is not really a positive story for sports 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 professionals at a World sports betting Law Report conference into sports betting, the focus has to be on sportspersons and sportswomen.

As Simon Taylor of the Professional Players' Federation mentions: "The only individuals who can repair a match are the rivals 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 thinks that it is not sufficient to simply have deterrents, and disciplinary treatments, but that the way to tackle prospective concerns around gamers is also through education.

Mr Taylor says guidelines need to be described clearly to gamers with clear examples, and by individuals they respect.

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

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

'Brand damage'

Matt Johnson, head of regulative legal advice at the Football Association, agrees.
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"Prevention is better than treatment, and we likewise make a point of telling players 'you are going to be captured'."

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

"If it loses that then individuals do not want to wager, that is not in gambling companies' interests, and it is not in our interests."

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

FA guidelines suggest players are not permitted to wager on a competition in which they are involved.

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

So, even a Second Division player 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 threat to the game," he says. "Once self-confidence has been harmed it is tough to get it back - mud sticks."

'Overwhelmingly legal'

If this represents 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 regulate commercial gaming in Great Britain.

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

"The frustrating bulk of sports betting taking location through UK operators is legal and reasonable," he states.

"But for some there is the temptation to ... corruptly hinder the outcome of a sporting occasion.

"Such unfaithful has the prospective to undermine the stability of a sport, and it likewise hurts the business interests of sports betting bodies and sports betting wagering."

The commission has actually developed an in-house Sports Betting Intelligence Unit to get and disseminate info to sporting authorities, wagering companies and policing authorities.

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

"We will signal sports betting of our concerns, to assist avoid or curtail [illegal] activity"

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

'Vulnerabilities'

But in a two-and-a-half year period there has actually been just 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 examinations, and that much helpful details has also been passed to sports betting authorities.

He stated that where an investigation by a sport governing body was quicker, and more cost efficient, then the commission would think about discontinuing 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 wagering market were well-informed about sports betting and sporting people, and about sports betting operations and the movement of money.

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

Related web links
bet9ja.com
World sports betting Law Report

ICC
bet9ja.com
Professional Players Federation

Professional Footballers' Association

The FA

Betfair

Sport & Markt

BLP

Gambling Commission

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