Sport Betting Industry Wants To Protect Itself

Sport wagering market seeks to safeguard itself

16 September 2010

By Bill Wilson

Business press reporter, BBC News

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sports betting on sport is big service.

Sport England approximates the value of spending on sport-related gaming 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 summertime.

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

But when the stability of events are struck the gaming industry suffers, and earnings are put under hazard if consumers can not bet with confidence.

And there can have been few higher-profile sport wagering stories than those impacting cricket and snooker this year.

High-profile

As Sport & Markt's Gareth Moore observes: "Everyone talks about the sports betting market now.

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

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

Three of these gamers 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 prohibited recently for 6 months for failing to report the unlawful approach to him to toss frames.

There are likewise 2 other continuing examinations - not associated to Mr Higgins - into snooker.

'Honest'

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

"If the sport is viewed as honest, straight and fair that is excellent for wagering firms due to the fact that people will invest money wagering with confidence," he says.

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

"That is because the perception is that 'cricket is now something we might have 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, the focus needs to be on sportspersons and sportswomen.

As Simon Taylor of the Professional Players' Federation mentions: "The only people 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 gamer organisations, such as the Professional Footballers' Association.

He thinks that it is not sufficient to merely have deterrents, sanctions and disciplinary treatments, but that the way to deal with potential concerns around gamers is likewise through education.

Mr Taylor says guidelines need to be discussed plainly to players with clear examples, and by individuals they respect.

"Through informing players about sports betting wagering you enhance integrity and that remains in everybody's interest," he includes.

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

'Brand damage'

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

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

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

"If it loses that then people don't desire to bet, that is not in gambling companies' interests, and it is not in our interests."

He said that as soon as a good reputation was lost, the damage to a sport was "enormous".

FA guidelines indicate gamers are not enabled to bet on a competition in which they are involved.

Mr Johnson says players have actually to be seen not to be cashing in on any inside understanding, which he states might trigger "brand damage" to football and its competitors.

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

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

'Overwhelmingly legal'

If this represents the "carrot" approach, then possibly 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 gaming in Great Britain.

An ex-chief constable of West Midlands cops, Mr Tofiluk has obligation 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 states.

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

"Such cheating has the possible to weaken the stability of a sport, and it likewise hurts the business interests of sports betting bodies and sports betting wagering."

The commission has actually established an in-house Sports Betting Intelligence Unit to get and distribute information 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 inform sports betting of our issues, to help avoid or curtail [illegal] activity"

In May 2010, the commission likewise presented a confidential telephone hotline for those with information 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 unfaithful in relation to greyhound racing.

However, Mr Tofiluk says there are still eight continuous examinations, which much beneficial info has actually also been passed to sports betting authorities.

He stated that where an investigation by a sport governing body was quicker, and more expense efficient, 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 aiming to cheat the sports betting industry were well-informed about sports betting and sporting individuals, and about wagering operations and the motion of money.

"They look for the vulnerabilities of these to assist in their business."