Sport wagering market looks to secure itself

16 September 2010

By Bill Wilson

Business reporter, BBC News

sports betting on sport is big business.

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

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

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

But when the integrity of occasions are struck the sports betting market suffers, and profits are put under threat if customers can not bet with self-confidence.

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

High-profile

As Sport & Markt's Gareth Moore observes: "Everyone speak about 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 been questioned by police over spot-fixing accusations connecting to a test against England at Lord's last month.

Three of these gamers have stated they will likewise challenge the corruption charges installed 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 banned recently for 6 months for stopping working to report the prohibited method to him to throw frames.

There are also 2 other continuing examinations - unrelated to Mr Higgins - into snooker.

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

"If the sport is perceived as honest, straight and reasonable that benefits sports betting firms because individuals will spend cash sports betting with self-confidence," he says.

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

"That is due to the fact that the perception is that 'cricket is now something we might have to take care about'."

'Education'

So what can be done to prevent future scandals?

According to specialists at a World sports betting Law Report conference into sports betting gambling, 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 represents males and ladies in 15 sports betting in the UK, being an umbrella organisation for all gamer organisations, such as the Professional Footballers' Association.
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He believes that it is inadequate to simply have deterrents, sanctions and disciplinary treatments, however that the method to take on prospective issues around players is also through education.

Mr Taylor says rules require to be explained clearly to gamers with clear examples, and by people they respect.

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

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

'Brand damage'

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

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

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

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

He said that once a good reputation was lost, the damage to a sport was "enormous".

FA rules mean players are not enabled to bet on a competitors in which they are included.

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

So, even a Second 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 have to overcome to gamers the reputational threat to the video game," he says. "Once self-confidence has been harmed it is tough to get it back - mud sticks."

legal'

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

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

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

"The frustrating bulk of sports betting wagering taking place through UK operators is legal and reasonable," he says.

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

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

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

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

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

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

'Vulnerabilities'

But in a two-and-a-half year period there has been just one criminal prosecution, a 24-year-old guy who was cautioned for cheating in relation to greyhound racing.

However, Mr Tofiluk states there are still 8 continuous investigations, which much useful details has also been passed to sports betting authorities.

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

Meanwhile, he states a lot of those aiming to cheat the sports betting market were knowledgeable about sports betting and sporting individuals, and about sports betting operations and the motion of money.

"They look for 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
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BLP

Gambling Commission