1 Sport Betting Industry Aims To Protect Itself
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Sport wagering industry looks to secure itself

16 September 2010
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By Bill Wilson
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Business press reporter, BBC News

sports betting on sport is huge business.

Sport England estimates the worth of spending 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 even more, with an approximated ₤ 1bn bet on the World Cup alone in the UK this summer season.

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.

But when the stability of occasions are struck the gambling industry suffers, and incomes are put under danger if consumers 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 discuss 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 papers."

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

Three of these gamers have 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 claims, but was prohibited last week for six months for failing to report the unlawful technique to him to throw frames.

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

'Honest'

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

"If the sport is perceived as truthful, straight and fair that is excellent for sports betting firms since individuals will spend money wagering with confidence," he states.

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

"That is since the perception is that 'cricket is now something we may have to take care 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 gambling, 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 gamer organisations, such as the Professional Footballers' Association.

He thinks that it is insufficient to simply have deterrents, sanctions and disciplinary procedures, however that the method to deal with prospective concerns around gamers is likewise through education.

Mr Taylor says guidelines need to be explained plainly to players with clear examples, and by people they appreciate.

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

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

'Brand damage'

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

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

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

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

He said that when an excellent reputation was lost, the damage to a sport was "incalculable".

FA rules mean gamers are not enabled to bank on a competitors in which they are included.

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

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

"We need to get over to players the reputational risk to the video game," he says. "Once confidence has actually been damaged it is hard to get it back - mud sticks."

'Overwhelmingly legal'

If this represents the "carrot" method, 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 business sports betting in Great Britain.

An ex-chief constable of West Midlands authorities, 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 states.

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

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

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

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

"We will signal sports betting of our issues, to help prevent or cut [illegal] 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 duration there has been just one criminal prosecution, a 24-year-old male who was warned for unfaithful in relation to greyhound racing.

However, Mr Tofiluk says there are still 8 ongoing investigations, and that much beneficial info has also been passed to sports betting authorities.

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

Meanwhile, he says a lot of those looking to cheat the sports betting industry were experienced about sports betting and sporting individuals, and about sports betting operations and the motion of money.

"They seek out 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
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BLP

Gambling Commission
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