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Sport betting industry aims to secure itself
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16 September 2010
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By Bill Wilson

Business press reporter, BBC News

Betting on sport is substantial company.

Sport England approximates the value of costs 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 actually grown further, 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 global betting market will be worth 263bn euros (₤ 220bn) by 2012, with much of that driven by web and sports betting.

But when the stability of occasions are hit the sports betting market suffers, and profits are put under hazard if clients can not wager 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 speak about the sports betting gambling market now.

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

Four Pakistan cricketers have actually been questioned by police over spot-fixing allegations associating with 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 champion John Higgins was cleared of match-fixing accusations, but was prohibited recently for six months for stopping working to report the unlawful technique to him to throw frames.

There are also two other continuing investigations - not related 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 perceived as sincere, straight and reasonable that is excellent for sports betting companies since people will spend money sports betting with self-confidence," he states.

"If you take the Pakistan accusations, although unassociated to the UK regulated wagering market ... it is not really a positive story for betting in the UK.

"That is because the perception is that 'cricket is now something we might have to be mindful about'."

'Education'

So what can be done to prevent future scandals?

According to experts at a World 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 fix a match are the rivals or the referee."

His organisation represents men and ladies in 15 sports betting in the UK, being an umbrella organisation for all player organisations, such as the Professional Footballers' Association.

He believes that it is inadequate to merely have deterrents, sanctions and disciplinary procedures, but that the way to take on prospective concerns around gamers is likewise through education.

Mr Taylor says rules need to be explained clearly to gamers with clear examples, and by individuals they respect.

"Through informing gamers about sports betting you strengthen stability which remains in everybody's interest," he includes.

"If gamers are harder to corrupt then sport will be more difficult to corrupt."
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'Brand damage'

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

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

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

"If it loses that then individuals don't want to wager, that is not in sports betting companies' interests, and it is not in our interests."

He said that once a good track record was lost, the damage to a sport was "incalculable".

FA rules suggest gamers are not permitted to bet on a competitors in which they are involved.

Mr Johnson states players need to be seen not to be capitalizing any inside knowledge, which he says might cause "brand damage" to football and its competitors.

So, even a Second Division player 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 risk to the video game," he says. "Once confidence has 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 regulation at the Gambling Commission, represents the "stick".

The Gambling Commission was set up under the Gambling Act 2005 to manage industrial betting in Great Britain.

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

"The frustrating majority of sports betting taking place through UK operators is legal and fair," he states.

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

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

The commission has established an internal Sports Betting Intelligence Unit to receive and disseminate details to sporting authorities, betting firms and policing authorities.

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

"We will alert sports betting of our issues, to help prevent or cut [unlawful] activity"

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

'Vulnerabilities'

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

However, Mr Tofiluk says there are still eight continuous examinations, and that much useful details has actually likewise been passed to sports betting authorities.

He said that where an investigation by a sport governing body was quicker, and more expense efficient, 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 wanting to cheat the sports betting industry were educated about sports betting and sporting individuals, and about sports betting operations and the movement of money.

"They seek out the vulnerabilities of these to help in their enterprises."

Related internet links

World sports betting Law Report

ICC

Professional Players Federation
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Professional Footballers' Association

The FA

Betfair

Sport & Markt

BLP

Gambling Commission

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