Sport wagering market aims to secure itself

16 September 2010
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By Bill Wilson

Business reporter, BBC News

sports betting on sport is substantial business.

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

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

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

But when the stability of occasions are struck the gambling industry suffers, and profits are put under danger if clients can not wager with self-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 talks about the sports betting market now.

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

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

Three of these players have actually said 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 champ John Higgins was cleared of match-fixing claims, however was prohibited recently for 6 months for stopping working to report the unlawful method to him to throw frames.

There are also two other continuing examinations - unrelated 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 perceived as sincere, straight and fair that is excellent for wagering firms due to the fact that people will invest money sports betting with confidence," he states.

"If you take the Pakistan allegations, although unassociated to the UK managed wagering market ... it is not actually a favorable story for wagering in the UK.

"That is because the understanding is that 'cricket is now something we may have to be mindful 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, the focus has 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."
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His organisation represents guys and ladies 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 simply have deterrents, sanctions and disciplinary procedures, however that the method to deal with prospective problems around players is likewise through education.

Mr Taylor says guidelines require to be discussed clearly to gamers with clear examples, and by individuals they appreciate.

"Through educating players about sports betting wagering you enhance stability and that is in everyone's interest," he adds.

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

'Brand damage'

Matt Johnson, head of regulative legal suggestions at the Football Association, agrees.

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

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

"If it loses that then individuals don't desire to wager, that is not in gaming firms' interests, and it is not in our interests."

He said that as soon as an excellent reputation was lost, the damage to a sport was "incalculable".

FA rules mean players are not permitted to bank on a competition in which they are included.

Mr Johnson states players need to be seen not to be cashing in on any inside knowledge, which he states might cause "brand damage" to football and its competitions.

So, even a Second Division gamer knocked out of the FA Cup in the fall can not wager on a Manchester United v Chelsea cup final the following spring.
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"We need to overcome to gamers the reputational threat to the video game," he says. "Once self-confidence has been damaged it is difficult to get it back - mud sticks."

'Overwhelmingly legal'

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

The Gambling Commission was established under the Gambling Act 2005 to manage business gambling in Great Britain.

An ex-chief constable of West Midlands cops, Mr Tofiluk has obligation 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 occurring through UK operators is legal and fair," he says.
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"But for some there is the temptation to ... corruptly hinder the result of a sporting event.

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

The commission has established an internal Sports Betting Intelligence Unit to get and disseminate details to sporting authorities, wagering companies and policing authorities.

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

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

In May 2010, the commission likewise presented a personal telephone hotline for those with info or suspicions.

'Vulnerabilities'

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

However, Mr Tofiluk states there are still 8 continuous investigations, which much beneficial info has likewise been passed to sports betting authorities.

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

Meanwhile, he states much of those wanting to cheat the sports betting market were educated about sports betting and sporting individuals, and about wagering operations and the movement of money.

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

World sports betting Law Report
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ICC

Professional Players Federation

Professional Footballers' Association

The FA

Betfair

Sport & Markt

BLP

Gambling Commission
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