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Sport betting industry seeks to protect itself
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16 September 2010
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By Bill Wilson

Business reporter, BBC News

sports betting on sport is big business.

Sport England approximates the value of spending on sport-related gaming in England grew from ₤ 1.7 bn in 1985 to ₤ 2.8 bn in 2008.

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

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

But when the integrity of events are struck the betting industry suffers, and earnings are put under risk if customers can not bet with .

And there can have been couple of higher-profile sport betting stories than those affecting 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 considerable market in world organization, it is one that is now on the front pages of newspapers."

Four Pakistan cricketers have actually been questioned by authorities over spot-fixing allegations connecting to a test versus England at Lord's last month.
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Three of these players have said they will likewise challenge the corruption charges installed against 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, but was prohibited recently for six months for stopping working to report the unlawful approach to him to toss frames.

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

'Honest'

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

"If the sport is viewed as sincere, straight and reasonable that benefits sports betting firms because people will invest money wagering with self-confidence," he says.

"If you take the Pakistan claims, although unrelated to the UK managed sports betting market ... it is not really a positive story for wagering in the UK.

"That is since the perception is that 'cricket is now something we may need to be mindful 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 gambling, the focus needs to be on sportspersons and sportswomen.

As Simon Taylor of the Professional Players' Federation points out: "The only people who can repair a match are the competitors or the referee."

His organisation represents guys and women 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 treatments, but that the way to take on possible issues around gamers is likewise through education.

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

"Through informing gamers about sports betting wagering you enhance stability and that remains in everyone's interest," he includes.

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

'Brand damage'

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

"Prevention is much better than cure, and we also make a point of informing gamers 'you are going to be caught'."

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

"If it loses that then individuals do not wish to bet, that is not in betting companies' interests, and it is not in our interests."

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

FA rules suggest players are not enabled to wager on a competition in which they are involved.

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

So, even a 2nd Division player knocked out of the FA Cup in the autumn can not bet on a Manchester United v Chelsea cup final the following spring.

"We have to get over to gamers the reputational risk to the video game," he says. "Once self-confidence has actually been damaged it is tough to get it back - mud sticks."
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'Overwhelmingly legal'

If this represents the "carrot" technique, 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 gambling in Great Britain.

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

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

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

"Such cheating has the prospective to undermine the integrity of a sport, and it also hurts the business interests of sports betting bodies and sports betting."

The commission has actually developed an internal Sports Betting Intelligence Unit to get and distribute details to sporting authorities, sports betting companies and policing authorities.

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

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

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

'Vulnerabilities'

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

However, Mr Tofiluk states there are still eight continuous examinations, which much useful details has also been passed to sports betting authorities.

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

Meanwhile, he states much of those aiming to cheat the sports betting market were well-informed about sports betting and sporting people, and about wagering operations and the motion of money.

"They look for the vulnerabilities of these to assist in their business."

Related internet links

World sports betting Law Report

ICC

Professional Players Federation

Professional Footballers' Association

The FA

Betfair

Sport & Markt
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BLP

Gambling Commission
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