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market seeks to protect itself

16 September 2010

By Bill Wilson

Business reporter, BBC News

sports betting on sport is substantial company.

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

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

But when the integrity of occasions are struck the gambling industry suffers, and incomes are put under risk if clients can not wager with confidence.

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 talks about the sports betting gambling market now.

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

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

Three of these players have actually said 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 champion John Higgins was cleared of match-fixing allegations, but was banned recently for six months for stopping working to report the illegal method 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, one of the UK's most significant online sporting exchanges.

"If the sport is perceived as honest, straight and fair that benefits sports betting firms because people will spend cash wagering with confidence," he says.

"If you take the Pakistan allegations, although unassociated to the UK regulated wagering industry ... it is not really a positive story for wagering in the UK.
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"That is because the understanding is that 'cricket is now something we might have to take care about'."

'Education'

So what can be done to prevent future scandals?

According to specialists 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 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 believes that it is insufficient to simply have deterrents, sanctions and disciplinary procedures, but that the way to tackle possible concerns around players is also through education.

Mr Taylor states guidelines need to be discussed clearly to gamers with clear examples, and by individuals they appreciate.

"Through informing players about sports betting you enhance stability and that is in everyone's interest," he includes.
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"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 much better than cure, and we also make a point of informing players 'you are going to be captured'."

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

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

He said that as soon as a great track record was lost, the damage to a sport was "incalculable".
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FA rules imply gamers are not enabled to wager on a competition in which they are involved.

Mr Johnson states gamers have actually to be seen not to be capitalizing any inside understanding, which he states could trigger "brand damage" to football and its competitions.

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

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

'Overwhelmingly legal'

If this represents the "carrot" approach, then maybe Nick Tofiluk, director of policy at the Gambling Commission, represents the "stick".

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

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

"The overwhelming majority of sports betting wagering occurring through UK operators is legal and reasonable," he says.

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

"Such cheating has the potential to undermine the integrity of a sport, and it also harms the industrial interests of sports betting bodies and sports betting."

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

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

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

In May 2010, the commission also presented a private 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 male who was cautioned for unfaithful in relation to greyhound racing.

However, Mr Tofiluk states there are still eight ongoing investigations, which much beneficial details has actually 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 think about discontinuing 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 wagering market were knowledgeable about sports betting and sporting individuals, and about sports betting operations and the movement of money.

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

Related internet links

World sports betting Law Report

ICC

Professional Players Federation

Professional Footballers' Association

The FA

Betfair

Sport & Markt

BLP

Gambling Commission