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Sport wagering market looks to protect itself

16 September 2010

By Bill Wilson

Business press reporter, BBC News

sports betting on sport is big organization.

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

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

But when the integrity of occasions are struck the gambling market suffers, and revenues are put under hazard if clients can not bet with confidence.

And there can have been couple of higher-profile sport wagering stories than those affecting 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 considerable 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 allegations connecting to a test versus England at Lord's last month.

Three of these players have said they will likewise challenge the corruption charges mounted versus 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, however was banned recently for 6 months for failing to report the prohibited method to him to toss frames.

There are also 2 other continuing investigations - not associated to Mr Higgins - into snooker.

'Honest'

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

"If the sport is viewed as sincere, straight and reasonable that is good for sports betting companies since individuals will invest cash sports betting with confidence," he says.

"If you take the Pakistan claims, although unrelated to the UK regulated wagering market ... it is not truly a positive story for wagering in the UK.

"That is since the understanding is that 'cricket is now something we might have to beware about'."

'Education'

So what can be done to avoid future scandals?
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According to specialists at a World sports betting Law Report conference into sports betting, the focus needs to be on sportsmen 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 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 inadequate to simply have deterrents, sanctions and disciplinary procedures, however that the way to deal with possible concerns around gamers is also through education.

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

"Through informing players about sports betting you strengthen integrity and that remains 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 telling gamers 'you are going to be captured'."

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

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

He stated that when a good reputation was lost, the damage to a sport was "enormous".

FA rules indicate gamers are not permitted to wager on a competitors in which they are involved.

Mr Johnson says players need to be seen not to be capitalizing any inside understanding, which he says could trigger "brand damage" to football and its competitions.
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So, even a 2nd Division player knocked out of the FA Cup in the autumn can not bank on a Manchester United v final the following spring.

"We have to get over to gamers the reputational threat to the game," he says. "Once confidence has been harmed it is difficult to get it back - mud sticks."

'Overwhelmingly legal'
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If this represents the "carrot" approach, then maybe Nick Tofiluk, director of regulation at the Gambling Commission, represents the "stick".

The Gambling Commission was set up under the Gambling Act 2005 to regulate business gambling 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 sports betting, which is the remit of the FSA.

"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 interfere with the result of a sporting occasion.

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

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

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

"We will signal sports betting of our concerns, to help avoid or curtail [unlawful] activity"

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

'Vulnerabilities'

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

However, Mr Tofiluk states there are still 8 ongoing investigations, and that much useful details has actually also been passed to sports betting authorities.
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He said that where an examination by a sport governing body was quicker, and more cost effective, then the commission would think about terminating a criminal examination "in favour of letting sports betting governing bodies take the lead".

Meanwhile, he says a number of those wanting to cheat the sports betting industry were educated 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 web 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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