Sport sports betting 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 company.

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

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

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

But when the integrity of events are struck the gaming industry suffers, and incomes are put under risk if consumers can not wager with confidence.
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And there can have been couple of higher-profile sport sports betting stories than those affecting cricket and snooker this year.

High-profile

As Sport & Markt's Gareth Moore observes: "Everyone speak about the sports betting market now.

"Not just is it a substantial market in world company, it is one that is now on the front pages of papers."

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

Three of these players have said they will also challenge the corruption charges mounted 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 last week for 6 months for stopping working to report the illegal method to him to throw frames.

There are likewise 2 other continuing investigations - unrelated to Mr Higgins - into snooker.

'Honest'

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

"If the sport is viewed as honest, straight and fair that is excellent for sports betting firms due to the fact that people will spend cash wagering with self-confidence," he states.

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

"That is because the understanding is that 'cricket is now something we might have to beware 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, the focus has to be on sportspersons and sportswomen.

As Simon Taylor of the Professional Players' Federation points out: "The only people who can fix a match are the rivals or the referee."
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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 sufficient to merely have deterrents, sanctions and disciplinary procedures, but that the method to tackle potential problems around players is likewise through education.

Mr Taylor says guidelines require to be explained clearly to gamers with clear examples, and by individuals they appreciate.

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

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

'Brand damage'

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

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

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

"If it loses that then people do not wish to wager, that is not in gambling companies' interests, and it is not in our interests."

He stated that once an excellent credibility was lost, the damage to a sport was "incalculable".

FA guidelines imply players are not allowed to bank on a competitors in which they are involved.

Mr Johnson states gamers need to be seen not to be capitalizing any inside understanding, which he states might cause "brand name damage" to football and its competitions.

So, even a 2nd Division gamer knocked out of the FA Cup in the autumn can not bet on a Manchester United v cup last the following spring.

"We have to get over to players the reputational danger to the video game," he states. "Once self-confidence has actually been harmed it is difficult to get it back - mud sticks."

'Overwhelmingly legal'

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

The Gambling Commission was set up under the Gambling Act 2005 to control industrial sports betting in Great Britain.

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

"The frustrating bulk of sports betting happening through UK operators is legal and fair," he says.

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

"Such cheating has the prospective to undermine the integrity of a sport, and it also damages the commercial interests of sports betting bodies and sports betting."
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The commission has actually established an internal Sports Betting Intelligence Unit to receive and disseminate details to sporting authorities, sports betting firms and policing authorities.

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

"We will alert sports betting of our concerns, to assist prevent or curtail [prohibited] activity"

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

'Vulnerabilities'

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

However, Mr Tofiluk says there are still eight continuous examinations, and that much helpful information has likewise been passed to sports betting authorities.

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

Meanwhile, he says a number of those aiming to cheat the sports betting industry were knowledgeable about sports betting and sporting individuals, and about wagering operations and the movement of money.

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

Related internet links

World sports betting Law Report

ICC

Professional Players Federation

Professional Footballers' Association

The FA

Betfair

Sport & Markt

BLP

Gambling Commission