Sport wagering industry looks to safeguard itself
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16 September 2010

By Bill Wilson

Business press reporter, BBC News

sports betting on sport is big service.

Sport England estimates the worth 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 actually grown further, with an approximated ₤ 1bn bet on the World Cup alone in the UK this summer season.

Meanwhile, German research firm Sport & Markt estimates the total international sports betting 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 events are hit the gambling industry suffers, and incomes are put under danger if clients can not wager with confidence.

And there can have been couple of higher-profile sport sports betting stories than those impacting cricket and snooker this year.

High-profile

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

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

Four Pakistan cricketers have been questioned by authorities over spot-fixing allegations associating with a test versus England at Lord's last month.

Three of these players have actually said they will also challenge the corruption charges mounted 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, however was prohibited last week for 6 months for stopping working to report the unlawful method to him to throw frames.

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

'Honest'

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

"If the sport is viewed as sincere, straight and fair that is good for wagering firms since individuals will invest cash wagering with confidence," he says.

"If you take the Pakistan accusations, although unrelated to the UK regulated wagering market ... it is not actually a favorable story for wagering in the UK.

"That is since the perception is that 'cricket is now something we may need to beware about'."

'Education'

So what can be done to prevent future scandals?

According to professionals at a World sports betting Law Report conference into sports betting gambling, the focus needs to be on sportspersons and sportswomen.

As Simon Taylor of the Professional Players' Federation points out: "The only individuals 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.
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He believes that it is inadequate to simply have deterrents, sanctions and disciplinary treatments, however that the way to tackle potential problems around players is also through education.

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

"Through informing players about sports betting you enhance integrity which remains in everybody's interest," he adds.

"If players 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 better than cure, and we likewise make a point of telling players 'you are going to be captured'."

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

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

He stated that when an excellent reputation was lost, the damage to a sport was "incalculable".

FA rules indicate gamers are not allowed to bank on a competition in which they are included.

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

So, even a 2nd Division player knocked out of the FA Cup in the autumn can not wager on a Manchester United v Chelsea cup last the following spring.

"We have to get over to players the reputational danger to the game," he states. "Once confidence has actually been harmed it is tough to get it back - mud sticks."

'Overwhelmingly legal'

If this represents the "carrot" method, 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 gaming in Great Britain.

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

"The overwhelming majority of sports betting wagering happening through UK operators is legal and fair," he says.
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"But for some there is the temptation to ... corruptly disrupt the outcome of a sporting occasion.

"Such cheating has the prospective to undermine the integrity of a sport, and it likewise hurts the commercial interests of sports betting bodies and sports betting."

The commission has developed an internal Sports Betting Intelligence Unit to get and distribute info to sporting authorities, sports betting firms and policing authorities.

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

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

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

'Vulnerabilities'
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But in a two-and-a-half year duration there has been just one prosecution, a 24-year-old man who was warned for unfaithful in relation to greyhound racing.

However, Mr Tofiluk says there are still 8 ongoing investigations, and that much helpful info has actually also been passed to sports betting authorities.
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He stated that where an examination by a sport governing body was quicker, and more expense reliable, then the commission would consider ceasing a criminal investigation "in favour of letting sports betting governing bodies take the lead".

Meanwhile, he states much of those looking to cheat the sports betting wagering market were experienced about sports betting and sporting people, and about wagering operations and the movement of money.

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

Related web links
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World sports betting Law Report

ICC

Professional Players Federation

Professional Footballers' Association

The FA

Betfair

Sport & Markt

BLP

Gambling Commission

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