Sport Betting Industry Wants To Protect Itself

Sport sports betting industry aims to protect itself

16 September 2010

By Bill Wilson

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Business press reporter, BBC News

sports betting on sport is big company.

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

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

But when the integrity of occasions are hit the gambling industry suffers, and profits are put under risk if consumers can not bet with confidence.

And there can have been couple of higher-profile sport wagering stories than those impacting 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 organization, it is one that is now on the front pages of newspapers."

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

Three of these gamers have actually said they will also challenge the corruption charges installed 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 accusations, however was banned recently for 6 months for failing to report the illegal method to him to toss frames.

There are also two other continuing investigations - unrelated 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 perceived as sincere, straight and fair that is great for sports betting companies due to the fact that individuals will spend cash wagering with self-confidence," he states.

"If you take the Pakistan accusations, although unrelated to the UK regulated wagering industry ... it is not actually a positive story for sports betting in the UK.

"That is since the perception 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 professionals at a World sports betting Law Report conference into sports betting gambling, the focus has to be on sportspersons and sportswomen.

As Simon Taylor of the Professional Players' Federation explains: "The only individuals who can fix a match are the rivals 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 believes that it is inadequate to merely have deterrents, sanctions and disciplinary treatments, however that the way to take on potential concerns around gamers is also through education.

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

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

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

'Brand damage'

Matt Johnson, head of regulatory legal guidance at the Football Association, agrees.

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

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

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

He said that when a good reputation was lost, the damage to a sport was "incalculable".

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

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

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

"We need to overcome to players the reputational danger to the game," he says. "Once confidence has actually been harmed it is difficult to get it back - mud sticks."

'Overwhelmingly legal'

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

The Gambling Commission was set up under the Gambling Act 2005 to manage industrial sports betting 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 sports betting, which is the remit of the FSA.

"The frustrating majority of sports betting occurring through UK operators is legal and fair," he says.

"But for some there is the temptation to ... corruptly disrupt the result of a sporting occasion.

"Such cheating has the possible to undermine the stability of a sport, and it also hurts the commercial interests of sports betting bodies and sports betting."

The commission has actually established an in-house Sports Betting Intelligence Unit to get and share 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 says.

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

In May 2010, the commission likewise introduced 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 prosecution, a 24-year-old guy who was warned for cheating in relation to greyhound racing.

However, Mr Tofiluk states there are still 8 continuous investigations, and that much helpful info 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 efficient, then the commission would think about ceasing a criminal investigation "in favour of letting sports betting governing bodies take the lead".

Meanwhile, he states a lot of those seeking to cheat the sports betting wagering industry were experienced about sports betting and sporting people, and about wagering operations and the movement of money.