Sport Betting Industry Looks To Protect Itself

Sport sports betting market aims to protect itself

16 September 2010

By Bill Wilson

Business reporter, BBC News

sports betting on sport is huge business.

Sport England approximates 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 most likely to have actually grown further, with an estimated ₤ 1bn bet on the World Cup alone in the UK this summer.

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

But when the stability of occasions are hit the gambling industry suffers, and earnings are put under threat if consumers can not bet with self-confidence.

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

Four Pakistan cricketers have been questioned by police over spot-fixing claims connecting to a test against England at Lord’s last month.

Three of these players have said 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 accusations, but was prohibited recently for 6 months for failing to report the prohibited technique to him to toss frames.

There are also 2 other continuing examinations – not associated to Mr Higgins – into snooker.

‘Honest’

David O’Reilly is legal counsel for Betfair, among the UK’s most significant online sporting exchanges.

“If the sport is perceived as truthful, straight and fair that is good for betting firms since individuals will invest cash wagering with self-confidence,” he states.

“If you take the Pakistan accusations, although unassociated to the UK regulated wagering market … it is not really a positive story for sports betting in the UK.

“That is since the understanding is that ‘cricket is now something we might need to be mindful about’.”

‘Education’

So what can be done to avoid future scandals?

According to experts 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 fix a match are the competitors or the referee.”

His organisation represents men 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 insufficient to merely have deterrents, sanctions and disciplinary procedures, however that the method to take on around gamers is likewise through education.

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

“Through educating players about sports betting you strengthen integrity which is in everybody’s interest,” he includes.

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

‘Brand damage’

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

“Prevention is better than treatment, and we also make a point of informing gamers ‘you are going to be caught’.”

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

“If it loses that then people do not want to bet, that is not in betting firms’ interests, and it is not in our interests.”

He stated that when a great credibility was lost, the damage to a sport was “incalculable”.

FA guidelines indicate players are not permitted to bank on a competitors 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 player knocked out of the FA Cup in the fall can not bank on a Manchester United v Chelsea cup last the following spring.

“We have to get over to gamers the reputational threat to the game,” he states. “Once confidence has actually 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 regulation at the Gambling Commission, represents the “stick”.

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

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

“The frustrating bulk of sports betting wagering happening through UK operators is legal and fair,” he states.

“But for some there is the temptation to … corruptly disrupt the result of a sporting occasion.

“Such cheating has the prospective to undermine the stability of a sport, and it also hurts the commercial interests of sports betting bodies and sports betting.”

The commission has established an in-house Sports Betting Intelligence Unit to get and distribute details to sporting authorities, betting firms and policing authorities.

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

“We will alert sports betting of our issues, to help avoid or reduce [unlawful] 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 period there has actually 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 ongoing examinations, and that much beneficial details has actually also been passed to sports betting authorities.

He stated that where an examination by a sport governing body was quicker, and more cost reliable, 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 wanting to cheat the sports betting industry were knowledgeable about sports betting and sporting individuals, and about wagering operations and the motion of cash.

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

Related web links

World sports betting Law Report

ICC

Professional Players Federation

Professional Footballers’ Association

The FA

Betfair

Sport & Markt

BLP

Gambling Commission