Sport Betting Industry Looks To Protect Itself
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Sport wagering industry looks to secure itself
16 September 2010
By Bill Wilson
Business press reporter, BBC News
sports betting on sport is big company.
estimates the value of costs on sport-related gambling in England grew from ₤ 1.7 bn in 1985 to ₤ 2.8 bn in 2008.
And that figure is likely to have actually grown even more, with an approximated ₤ 1bn bet on the World Cup alone in the UK this summer season.
Meanwhile, German research company Sport & Markt approximates the general global sports betting 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 occasions are hit the sports betting market suffers, and incomes are put under danger if consumers can not bet with self-confidence.
And there can have been couple of higher-profile sport wagering stories than those affecting 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 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 authorities over spot-fixing allegations connecting to a test against England at Lord's last month.
Three of these players have actually 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 champ John Higgins was cleared of match-fixing accusations, however was prohibited recently for 6 months for failing to report the prohibited method to him to toss frames.
There are also two other continuing investigations - not associated to Mr Higgins - into snooker.
'Honest'
David O'Reilly is legal counsel for Betfair, among the UK's biggest online sporting exchanges.
"If the sport is perceived as sincere, straight and reasonable that benefits wagering companies because individuals will spend money sports betting with self-confidence," he says.
"If you take the Pakistan accusations, although unassociated to the UK regulated sports betting market ... it is not truly a positive story for sports betting in the UK.
"That is due to the fact that the understanding is that 'cricket is now something we may have 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, 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 men and females in 15 sports betting in the UK, being an umbrella organisation for all player organisations, such as the Professional Footballers' Association.
He thinks that it is not adequate to simply have deterrents, sanctions and disciplinary treatments, however that the method to deal with potential concerns around gamers is also through education.
Mr Taylor says rules need to be explained clearly to players with clear examples, and by individuals they appreciate.
"Through educating gamers about sports betting wagering you enhance integrity and that 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 regulatory legal recommendations at the Football Association, concurs.
"Prevention is better than cure, and we likewise make a point of telling gamers 'you are going to be captured'."
"It is important that sport is directly, and is seen to be straight," he includes.
"If it loses that then people don't desire to bet, that is not in gaming companies' interests, and it is not in our interests."
He stated that once a good credibility was lost, the damage to a sport was "incalculable".
FA guidelines suggest players are not enabled to bet on a competitors in which they are included.
Mr Johnson states players have to be seen not to be cashing in on any inside understanding, which he says could cause "brand damage" to football and its competitions.
So, even a Second Division player knocked out of the FA Cup in the fall can not bank on a Manchester United v Chelsea cup last the following spring.
"We have to overcome to players the reputational risk to the game," he states. "Once confidence has been damaged it is hard to get it back - mud sticks."
'Overwhelmingly legal'
If this represents the "carrot" approach, 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 control industrial gambling in Great Britain.
An ex-chief constable of West Midlands police, 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 wagering taking place through UK operators is legal and fair," he states.
"But for some there is the temptation to ... corruptly hinder the result of a sporting occasion.
"Such cheating has the possible to undermine the stability of a sport, and it likewise hurts the business interests of sports betting bodies and sports betting."
The commission has established an in-house Sports Betting Intelligence Unit to receive and share info to sporting authorities, sports betting firms and policing authorities.
"Since 2007 we have experienced a considerable insight into world of corrupt sports betting wagering," he says.
"We will alert sports betting of our concerns, to help prevent or cut [unlawful] activity"
In May 2010, the commission also presented a personal telephone hotline for those with information or suspicions.
'Vulnerabilities'
But in a two-and-a-half year period there has actually been simply one prosecution, a 24-year-old guy who was cautioned for unfaithful in relation to greyhound racing.
However, Mr Tofiluk says there are still 8 continuous examinations, and that much helpful info has actually also been passed to sports betting authorities.
He said that where an examination by a sport governing body was quicker, and more cost effective, then the commission would consider stopping 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 market were well-informed about sports betting and sporting individuals, and about sports betting operations and the motion of cash.
"They look for the vulnerabilities of these to help in their enterprises."
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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