Sport Betting Industry Looks To Protect Itself

Sport wagering market aims to protect itself

16 September 2010

By Bill Wilson

Business press reporter, BBC News

sports betting on sport is big company.

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

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

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

But when the stability of occasions are hit the sports betting industry suffers, and earnings are put under danger 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 talks about the sports betting gambling market now.

“Not just is it a considerable market in world company, it is one that is now on the front pages of newspapers.”

Four Pakistan cricketers have been questioned by authorities over spot-fixing accusations relating to a test against England at Lord’s last month.

Three of these players have stated they will also challenge the corruption charges installed versus the trio by the sport governing body the International Cricket Council.

Meanwhile, three-times snooker world champion John Higgins was cleared of match-fixing accusations, but was prohibited last week for six months for stopping working to report the illegal method 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 viewed as honest, straight and reasonable that benefits wagering companies since people will spend money sports betting with confidence,” he states.

“If you take the Pakistan allegations, although unassociated to the UK regulated wagering industry … it is not truly a positive story for wagering in the UK.

“That is since the perception is that ‘cricket is now something we might 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, 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 and women 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 possible problems around players is also through education.

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

“Through informing players about sports betting wagering you enhance stability which is in everybody’s interest,” he includes.

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

‘Brand damage’

Matt Johnson, head of regulative legal recommendations at the Football Association, concurs.

“Prevention is better than cure, and we likewise make a point of telling players ‘you are going to be captured’.”

“It is essential that sport is straight, and is seen to be directly,” he includes.

“If it loses that then people don’t want to bet, that is not in sports betting firms’ 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 imply players are not enabled to bank on a competition in which they are included.

Mr Johnson states players have actually to be seen not to be capitalizing any inside knowledge, which he states could trigger “brand damage” to football and its competitions.

So, even a 2nd 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 need to get over to gamers the reputational risk to the video game,” he says. “Once confidence has been damaged it is hard 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 commercial sports betting in Great Britain.

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

“The overwhelming majority of sports betting wagering occurring 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 possible to undermine the stability of a sport, and it likewise hurts the commercial interests of sports betting bodies and sports betting wagering.”

The commission has established an in-house 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 inform sports betting of our issues, to assist avoid or cut [illegal] activity”

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

‘Vulnerabilities’

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

However, Mr Tofiluk says there are still eight continuous investigations, which much useful info has also been passed to sports betting authorities.

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

Meanwhile, he states a number of those looking to cheat the sports betting industry were well-informed about sports betting and sporting people, and about sports betting operations and the movement of money.

“They look for out 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

Gambling Commission

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