Sport betting market looks to secure itself

16 September 2010

By Bill Wilson

Business press reporter, BBC News

Betting on sport is big service.

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

And that figure is most likely to have grown even more, with an approximated ₤ 1bn bet on the World Cup alone in the UK this summer.

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

But when the stability of occasions are hit the gambling market suffers, and revenues are put under hazard if customers can not wager with self-confidence.

And there can have been couple of higher-profile sport betting 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 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 allegations associating with a test versus England at Lord's last month.

Three of these gamers have actually said they will likewise 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 last week for 6 months for failing to report the illegal method to him to toss frames.

There are also two other continuing examinations - unrelated to Mr Higgins - into snooker.

'Honest'

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

"If the sport is viewed as honest, straight and reasonable that benefits wagering companies because individuals will spend money betting with confidence," he says.

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

"That is since the perception is that 'cricket is now something we may need 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 sportsmen and sportswomen.

As Simon Taylor of the Professional Players' Federation mentions: "The only individuals who can repair 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 treatments, but that the method to tackle possible problems around players is also 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 stability which is in everyone's interest," he adds.

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

'Brand damage'

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

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

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

"If it loses that then people do not wish to bet, that is not in sports betting 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 guidelines indicate gamers are not permitted to wager on a competitors in which they are involved.

Mr Johnson says players have actually to be seen not to be capitalizing any inside knowledge, which he states could trigger "brand 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 Chelsea cup last the following spring.

"We need 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 guideline at the Gambling Commission, represents the "stick".

The Gambling Commission was established under the Gambling Act 2005 to manage commercial betting in Great Britain.

An ex-chief constable of West Midlands authorities, Mr Tofiluk has obligation 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 wagering happening through UK operators is legal and fair," he says.

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

"Such cheating has the potential to weaken the integrity of a sport, and it likewise harms the business interests of sports betting bodies and sports betting."

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

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

"We will signal sports betting of our concerns, to assist avoid or cut [illegal] activity"

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

'Vulnerabilities'

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

However, Mr Tofiluk states there are still 8 continuous investigations, which much useful information has actually also been passed to sports betting authorities.

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

Meanwhile, he says many of those aiming to cheat the sports betting wagering industry were experienced about sports betting and sporting individuals, and about sports betting operations and the motion of cash.

"They look for the vulnerabilities of these to help 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