Sport sports betting market seeks to secure itself

16 September 2010

By Bill Wilson

Business press reporter, BBC News

Betting on sport is huge 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.

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

Meanwhile, German research study company Sport & Markt approximates the general global gaming 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 struck the gaming industry suffers, and earnings are put under hazard if customers can not wager with 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 gambling market now.

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

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

Three of these gamers have stated they will also challenge the corruption charges mounted 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 prohibited last week for six months for stopping working to report the illegal technique to him to toss frames.

There are also two 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 sincere, straight and reasonable that is great for betting companies since people will spend cash sports betting with confidence," he states.

"If you take the Pakistan accusations, although unrelated to the UK controlled wagering industry ... it is not truly a favorable story for sports betting in the UK.

"That is because the perception is that 'cricket is now something we may have to be cautious about'."

'Education'
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So what can be done to prevent future scandals?

According to experts 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 explains: "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 believes that it is insufficient to merely have deterrents, sanctions and disciplinary procedures, but that the method to take on prospective issues around players is also through education.

Mr Taylor states guidelines need to be discussed clearly to players with clear examples, and by individuals they appreciate.

"Through educating players about sports betting wagering you strengthen integrity which remains in everyone's interest," he adds.

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

Matt Johnson, head of guidance at the Football Association, concurs.

"Prevention is much better than cure, and we also 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 includes.

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

He said that as soon as an excellent reputation was lost, the damage to a sport was "incalculable".

FA guidelines imply gamers are not allowed to bank on a competitors in which they are involved.

Mr Johnson says players have actually 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 wager on a Manchester United v Chelsea cup final the following spring.
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"We need to overcome to gamers the reputational threat to the video game," he states. "Once self-confidence has actually been damaged it is hard to get it back - mud sticks."

'Overwhelmingly legal'

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

The Gambling Commission was set up under the Gambling Act 2005 to regulate commercial sports betting in Great Britain.

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

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

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

"Such cheating has the prospective to undermine the integrity of a sport, and it likewise damages 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, sports betting companies and policing authorities.

"Since 2007 we have experienced a significant insight into world of corrupt sports betting," he states.
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"We will inform sports betting of our issues, to assist avoid or cut [unlawful] activity"

In May 2010, the commission also presented a confidential telephone hotline for those with details or suspicions.
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'Vulnerabilities'

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

However, Mr Tofiluk says there are still eight continuous investigations, and that much useful info has 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 terminating a criminal investigation "in favour of letting sports betting governing bodies take the lead".

Meanwhile, he says much of those aiming to cheat the sports betting wagering industry were knowledgeable about sports betting and sporting people, and about sports betting 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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