Sport wagering industry looks to safeguard itself

16 September 2010

By Bill Wilson

Business reporter, BBC News

sports betting on sport is big service.

Sport England estimates the worth of spending 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 actually grown further, with an approximated ₤ 1bn bet on the World Cup alone in the UK this summertime.

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

But when the integrity of events are hit the sports betting market suffers, and incomes are put under risk if customers can not wager 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 considerable market in world business, it is one that is now on the front pages of newspapers."

Four Pakistan cricketers have actually been questioned by police over spot-fixing claims connecting to a test against England at Lord's last month.

Three of these players have stated 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 allegations, but was prohibited recently for six months for stopping working to report the illegal method 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, one of the UK's most significant online sporting exchanges.

"If the sport is viewed as honest, straight and fair that benefits sports betting firms since individuals will invest cash wagering with self-confidence," he says.

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

"That is due to the fact that the perception is that 'cricket is now something we may have to beware about'."

'Education'

So what can be done to avoid 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 mentions: "The only individuals who can repair a match are the competitors or the referee."

His organisation represents males and ladies 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 inadequate to merely have deterrents, sanctions and disciplinary procedures, however that the way to tackle potential problems around gamers is also through education.

Mr Taylor says guidelines require to be explained plainly to players with clear examples, and by individuals they appreciate.

"Through informing gamers about sports betting wagering you enhance stability and that is 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 regulative legal recommendations at the Football Association, agrees.

"Prevention is much better than treatment, and we likewise make a point of telling gamers 'you are going to be caught'."

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

"If it loses that then people don't wish to bet, that is not in gaming firms' interests, and it is not in our interests."

He stated that once a great credibility was lost, the damage to a sport was "enormous".

FA rules imply players are not enabled to bank on a competitors in which they are included.

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

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

"We have to overcome to gamers the reputational risk to the game," he says. "Once confidence has been harmed it is tough to get it back - mud sticks."

'Overwhelmingly legal'

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

The Gambling Commission was established under the Gambling Act 2005 to manage industrial gaming 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 wagering, which is the remit of the FSA.

"The overwhelming majority of sports betting wagering happening through UK operators is legal and fair," he states.

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

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

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

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

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

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

'Vulnerabilities'

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

However, Mr Tofiluk states there are still 8 ongoing investigations, and that much useful details has actually likewise been passed to sports betting authorities.

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

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

"They look for 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

BLP

Gambling Commission

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