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Sport wagering industry aims to safeguard itself
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16 September 2010
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By Bill Wilson

Business press reporter, BBC News

Betting on sport is huge service.

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

Which figure is most likely to have actually grown even more, with an estimated ₤ 1bn bet on the World Cup alone in the UK this summer.

Meanwhile, German research company Sport & Markt estimates the general global gaming market will be worth 263bn euros (₤ 220bn) by 2012, with much of that driven by internet and sports betting gaming.

But when the stability of occasions are struck the sports betting market suffers, and profits are put under danger if clients can not wager with confidence.

And there can have been few higher-profile sport betting stories than those affecting cricket and snooker this year.

High-profile

As Sport & Markt's Gareth Moore observes: "Everyone talks about the sports betting gambling market now.

"Not only is it a considerable market in world company, 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 associating with a test against England at Lord's last month.

Three of these gamers have actually stated they will likewise 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 claims, but was prohibited last week for six months for failing to report the illegal method to him to toss frames.

There are also 2 other continuing examinations - unrelated 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 viewed as sincere, straight and reasonable that is great for wagering firms since individuals will invest money sports betting with self-confidence," he says.

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

"That is because the understanding is that 'cricket is now something we may need to take care about'."

'Education'

So what can be done to avoid future scandals?

According to professionals at a World sports betting Law Report conference into sports betting gambling, the focus has to be on sportspersons and sportswomen.

As Simon Taylor of the Professional Players' Federation mentions: "The only individuals who can fix a match are the rivals 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 not sufficient to simply have deterrents, sanctions and disciplinary procedures, but that the method to take on possible concerns around gamers is also through education.

Mr Taylor says guidelines require to be discussed plainly to with clear examples, and by people they respect.

"Through educating players about sports betting wagering you reinforce integrity and that is in everyone's interest," he adds.

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

'Brand damage'

Matt Johnson, head of regulatory legal guidance at the Football Association, agrees.

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

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

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

He said that once a great track record was lost, the damage to a sport was "enormous".

FA rules indicate gamers are not allowed to bet on a competitors in which they are involved.

Mr Johnson states gamers need to be seen not to be capitalizing any inside knowledge, which he says could cause "brand damage" to football and its competitors.

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

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

'Overwhelmingly legal'

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

The Gambling Commission was established under the Gambling Act 2005 to manage commercial sports betting in Great Britain.

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

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

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

"Such unfaithful has the prospective to undermine the integrity of a sport, and it likewise hurts the industrial interests of sports betting bodies and sports betting wagering."

The commission has actually established an in-house Sports Betting Intelligence Unit to get and share details to sporting authorities, sports betting companies and policing authorities.

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

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

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

'Vulnerabilities'
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But in a two-and-a-half year duration there has been just one prosecution, a 24-year-old male who was cautioned for unfaithful in relation to greyhound racing.

However, Mr Tofiluk states there are still eight ongoing investigations, which much useful 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 investigation "in favour of letting sports betting governing bodies take the lead".

Meanwhile, he says a lot of those aiming to cheat the sports betting market were educated about sports betting and sporting people, and about sports betting operations and the movement of cash.

"They look for the vulnerabilities of these to help in their enterprises."

Related internet links

World sports betting Law Report

ICC

Professional Players Federation

Professional Footballers' Association

The FA

Betfair

Sport & Markt

BLP
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Gambling Commission

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