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Sport wagering industry seeks to safeguard itself

16 September 2010
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By Bill Wilson

Business reporter, BBC News

sports betting on sport is big service.

Sport England estimates the worth 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 further, with an estimated ₤ 1bn bet on the World Cup alone in the UK this summertime.

Meanwhile, German research firm Sport & Markt approximates the overall global sports betting market will deserve 263bn euros (₤ 220bn) by 2012, with much of that driven by web and sports betting.

But when the stability of occasions are struck the sports betting industry suffers, and incomes are put under threat if clients can not bet 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 speak about the sports betting gambling market now.

"Not only is it a significant market in world business, it is one that is now on the front pages of newspapers."

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

Three of these gamers have actually stated 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 accusations, but was prohibited recently for 6 months for failing to report the unlawful approach to him to throw frames.

There are also 2 other continuing investigations - not related 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 viewed as sincere, straight and fair that benefits wagering firms because people will invest cash sports betting with self-confidence," he states.

"If you take the Pakistan allegations, although unrelated to the UK controlled wagering industry ... it is not actually a positive story for sports betting in the UK.

"That is since the understanding 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 gambling, the focus needs to be on sportsmen and sportswomen.

As Simon Taylor of the Professional Players' Federation explains: "The only individuals who can repair a match are the competitors 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 adequate to merely have deterrents, sanctions and disciplinary procedures, but that the method to deal with possible problems around gamers is also through education.

Mr Taylor states rules need to be explained plainly to players with clear examples, and by individuals they appreciate.

"Through informing players about sports betting wagering you enhance integrity 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 recommendations at the Football Association, agrees.

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

"It is essential that sport is directly, and is seen to be directly," he includes.

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

He said that as soon as a good track record was lost, the damage to a sport was "enormous".
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FA rules imply players are not allowed to wager on a competition in which they are included.

Mr Johnson states gamers have actually to be seen not to be cashing in on any inside knowledge, which he says could cause "brand damage" to football and its competitions.

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

"We need to get over to gamers the reputational danger to the 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 maybe Nick Tofiluk, director of regulation at the Gambling Commission, represents the "stick".

The Gambling Commission was established under the Gambling Act 2005 to manage industrial gaming in Great Britain.

An ex-chief constable of West Midlands cops, Mr Tofiluk has responsibility for policing all wagering in the UK apart from spread wagering, which is the remit of the FSA.
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"The overwhelming bulk of sports betting wagering occurring through UK operators is legal and reasonable," he states.

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

"Such unfaithful has the possible to undermine the stability of a sport, and it likewise harms the commercial interests of sports betting bodies and sports betting wagering."

The commission has developed an in-house Sports Betting Intelligence Unit to receive and share information to sporting authorities, sports 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 notify sports betting of our concerns, to help avoid or curtail [unlawful] 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 been simply one prosecution, a 24-year-old man who was warned for cheating in relation to greyhound racing.

However, Mr Tofiluk says there are still eight continuous investigations, and that much helpful details 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 consider discontinuing a criminal investigation "in favour of letting sports betting governing bodies take the lead".

Meanwhile, he says much of those looking to cheat the sports betting industry were educated about sports betting and sporting people, and about sports betting operations and the movement of cash.

"They look for out the vulnerabilities of these to help 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

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