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Sport wagering industry aims to secure itself
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16 September 2010

By Bill Wilson

Business reporter, BBC News

sports betting on sport is big business.

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

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

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

But when the integrity of occasions are struck the gaming industry suffers, and earnings are put under hazard if customers can not wager with confidence.

And there can have been few 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 only is it a significant market in world service, it is one that is now on the front pages of papers."

Four Pakistan cricketers have actually been questioned by cops over spot-fixing allegations relating to a test versus England at Lord's last month.

Three of these gamers have 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 allegations, however was banned recently for six months for failing to report the prohibited technique 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, among the UK's biggest online sporting exchanges.

"If the sport is viewed as honest, straight and reasonable that is excellent for sports betting firms since people will invest money sports betting with confidence," he says.
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"If you take the Pakistan accusations, although unassociated to the UK controlled wagering industry ... it is not really a favorable story for sports betting 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 experts at a World sports betting Law Report conference into sports betting, the focus needs to be on sportsmen and sportswomen.

As Simon Taylor of the Professional Players' Federation explains: "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 player organisations, such as the Professional Footballers' Association.

He thinks that it is not enough to merely have deterrents, sanctions and disciplinary procedures, but that the method to deal with prospective issues around gamers is also through education.

Mr Taylor says guidelines need to be discussed clearly to gamers with clear examples, and by people they respect.

"Through informing gamers about sports betting you enhance integrity which remains in everyone's interest," he adds.

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

'Brand damage'

Matt Johnson, head of regulative legal suggestions at the Football Association, agrees.

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

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

"If it loses that then individuals don't wish to wager, that is not in gambling firms' interests, and it is not in our interests."

He stated that once an excellent track record was lost, the damage to a sport was "enormous".

FA guidelines indicate players are not enabled to bet on a competitors in which they are included.

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

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

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

'Overwhelmingly legal'

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

The Gambling Commission was set up under the Gambling Act 2005 to manage commercial gaming in Great Britain.

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

"The frustrating majority 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 outcome of a sporting occasion.

"Such cheating has the prospective to weaken the stability of a sport, and it likewise damages the industrial interests of sports betting bodies and sports betting."

The commission has actually established an internal Sports Betting Intelligence Unit to get and disseminate information to sporting authorities, betting companies and policing authorities.

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

"We will inform sports betting of our issues, to help avoid or curtail [illegal] activity"

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

'Vulnerabilities'

But in a two-and-a-half year period 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 8 ongoing investigations, which much helpful info has actually also been passed to sports betting authorities.

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

Meanwhile, he states many of those looking to cheat the sports betting industry were educated about sports betting and sporting people, and about wagering operations and the movement of money.

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

Related web links

World sports betting Law Report

ICC

Professional Players Federation

Professional Footballers' Association

The FA

Betfair

Sport & Markt
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BLP

Gambling Commission
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