Sport Betting Industry Wants To Protect Itself

Sport wagering industry aims to secure itself

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16 September 2010

By Bill Wilson

sports betting on sport is huge business.

Sport England estimates the worth of spending 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 overall international gambling 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 events are hit the sports betting industry suffers, and incomes are put under hazard if consumers can not wager with confidence.

And there can have been couple of 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 substantial 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 accusations associating with a test versus England at Lord's last month.

Three of these gamers have actually stated they will likewise challenge the corruption charges installed 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 last week for six months for failing to report the illegal approach to him to throw frames.

There are likewise two other continuing investigations - not related to Mr Higgins - into snooker.

'Honest'

David O'Reilly is legal counsel for Betfair, one of the UK's biggest online sporting exchanges.

"If the sport is perceived as truthful, straight and reasonable that is great for wagering companies because individuals will invest money sports betting with confidence," he says.

"If you take the Pakistan allegations, although unassociated to the UK regulated sports betting industry ... it is not actually a positive story for wagering in the UK.

"That is because the understanding is that 'cricket is now something we might need to take care 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 has to be on sportspersons and sportswomen.

As Simon Taylor of the Professional Players' Federation explains: "The only people who can repair a match are the rivals 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 believes that it is insufficient to merely have deterrents, sanctions and disciplinary procedures, however that the way to deal with possible problems around gamers is likewise through education.

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

"Through educating gamers about sports betting you strengthen stability and that is in everyone's interest," he includes.

"If players are harder 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 also make a point of telling gamers 'you are going to be captured'."

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

"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 stated that as soon as a good credibility was lost, the damage to a sport was "incalculable".

FA guidelines indicate gamers are not permitted to bank on a competition in which they are included.

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

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

"We need to get over to gamers the reputational threat to the game," he says. "Once self-confidence has been harmed it is difficult to get it back - mud sticks."

'Overwhelmingly legal'

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

The Gambling Commission was set up under the Gambling Act 2005 to control commercial gambling 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 bulk of sports betting wagering happening through UK operators is legal and reasonable," he says.

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

"Such unfaithful has the potential to weaken the integrity of a sport, and it likewise harms the industrial interests of sports betting bodies and sports betting."

The commission has developed an internal Sports Betting Intelligence Unit to receive and distribute info to sporting authorities, wagering firms and policing authorities.

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

"We will alert sports betting of our issues, to help avoid or cut [unlawful] activity"

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

'Vulnerabilities'

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

However, Mr Tofiluk says there are still 8 continuous examinations, which much useful information has actually also been passed to sports betting authorities.

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

Meanwhile, he says numerous of those wanting to cheat the sports betting industry were well-informed about sports betting and sporting individuals, and about sports betting operations and the motion of money.

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