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Sport sports betting industry looks to safeguard itself
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16 September 2010
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By Bill Wilson
Business press reporter, BBC News
sports betting on sport is big business.
Sport England estimates the value of spending on sport-related sports betting in England grew from ₤ 1.7 bn in 1985 to ₤ 2.8 bn in 2008.
Which figure is most likely to have grown further, with an approximated ₤ 1bn bet on the World Cup alone in the UK this summer.
Meanwhile, German research firm Sport & Markt approximates the total global sports betting market will deserve 263bn euros (₤ 220bn) by 2012, with much of that driven by web and sports betting gambling.
But when the integrity of occasions are hit the sports betting industry suffers, and profits are put under danger if consumers can not wager with 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 discuss the sports betting gambling market now.
"Not just is it a significant market in world organization, it is one that is now on the front pages of papers."
Four Pakistan cricketers have actually been questioned by authorities over spot-fixing allegations associating with a test versus England at Lord's last month.
Three of these players have said they will also challenge the corruption charges mounted 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 accusations, but was prohibited last week for six months for failing to report the unlawful technique to him to toss 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 most significant online sporting exchanges.
"If the sport is viewed as honest, straight and fair that is good for wagering firms because people will invest cash sports betting with confidence," he says.
"If you take the Pakistan allegations, although unassociated to the UK managed wagering market ... it is not actually a favorable story for sports betting in the UK.
"That is because the perception is that 'cricket is now something we might need to be cautious 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 sportsmen and sportswomen.
As Simon Taylor of the Professional Players' Federation mentions: "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 gamer organisations, such as the Professional Footballers' Association.
He thinks that it is insufficient to simply have deterrents, sanctions and disciplinary treatments, but that the method to deal with potential problems around players is also through education.
Mr Taylor says guidelines need to be described clearly to gamers with clear examples, and by people they respect.
"Through educating gamers about sports betting wagering you reinforce stability and that remains in everyone's interest," he includes.
"If gamers are more difficult to corrupt then sport will be harder to corrupt."
'Brand damage'
Matt Johnson, head of regulatory legal advice at the Football Association, concurs.
"Prevention is much better than treatment, and we also make a point of telling gamers 'you are going to be captured'."
"It is vital that sport is directly, and is seen to be straight," he includes.
"If it loses that then individuals do not wish to wager, that is not in gaming companies' interests, and it is not in our interests."
He said that as soon as a great reputation was lost, the damage to a sport was "incalculable".
FA rules suggest players are not enabled to bet on a competitors in which they are included.
Mr Johnson says gamers need to be seen not to be cashing in on any inside understanding, which he says might trigger "brand damage" to football and its competitions.
So, even a Second 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 have to get over to players the reputational risk to the video game," he says. "Once 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 was set up under the Gambling Act 2005 to manage business gambling in Great Britain.
An ex-chief constable of West Midlands cops, 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 happening through UK operators is legal and reasonable," he states.
"But for some there is the temptation to ... corruptly interfere with the result of a sporting occasion.
"Such cheating has the possible to weaken the integrity of a sport, and it also harms the business interests of sports betting bodies and sports betting wagering."
The commission has developed an in-house Sports Betting Intelligence Unit to get and disseminate details to sporting authorities, wagering firms and policing authorities.
"Since 2007 we have actually experienced a significant insight into world of corrupt sports betting," he says.
"We will inform sports betting of our issues, to help prevent 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 duration there has actually been simply one prosecution, a 24-year-old guy who was cautioned for cheating in relation to greyhound racing.
However, Mr Tofiluk states there are still 8 ongoing examinations, which much helpful details has actually 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 ceasing a criminal investigation "in favour of letting sports betting governing bodies take the lead".
Meanwhile, he states a number of those aiming 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 cash.
"They seek out the vulnerabilities of these to help in their business."
Related web 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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