Sport Betting Industry Aims To Protect Itself
Sport betting market aims to protect itself
16 September 2010
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By Bill Wilson
Business press reporter, BBC News
sports betting on sport is big organization.
Sport England estimates the worth of spending on sport-related gambling 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 estimated ₤ 1bn bet on the World Cup alone in the UK this summertime.
Meanwhile, German research company Sport & Markt estimates the general international gaming market will be worth 263bn euros (₤ 220bn) by 2012, with much of that driven by web and sports betting.
But when the stability of events are struck the gambling industry suffers, and profits are put under threat if customers can not bet with self-confidence.
And there can have been few higher-profile sport sports betting stories than those impacting cricket and snooker this year.
High-profile
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As Sport & Markt's Gareth Moore observes: "Everyone discuss the sports betting market now.
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"Not just is it a substantial market in world company, it is one that is now on the front pages of papers."
Four Pakistan cricketers have been questioned by cops over spot-fixing accusations relating to a test against England at Lord's last month.
Three of these players 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 champ John Higgins was cleared of match-fixing claims, but was banned recently for six months for failing to report the prohibited approach to him to toss frames.
There are also 2 other continuing examinations - unrelated to Mr Higgins - into snooker.
'Honest'
David O'Reilly is legal counsel for Betfair, one of the UK's most significant online sporting exchanges.
"If the sport is perceived as sincere, straight and reasonable that is good for betting companies because people will invest money wagering with self-confidence," he states.
"If you take the Pakistan claims, although unassociated to the UK managed betting industry ... it is not really a favorable story for betting in the UK.
"That is since the understanding is that 'cricket is now something we may need to be mindful about'."
'Education'
So what can be done to avoid future scandals?
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According to professionals at a World sports betting Law Report conference into sports betting gambling, the focus has to be on sportsmen and sportswomen.
As Simon Taylor of the Professional Players' Federation mentions: "The only individuals who can repair a match are the competitors or the referee."
His organisation represents men and females 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 not sufficient to merely have deterrents, sanctions and disciplinary procedures, however that the method to tackle possible problems around gamers is also through education.
Mr Taylor says rules need to be described plainly to gamers with clear examples, and by individuals they appreciate.
"Through educating players about sports betting wagering you strengthen integrity which is in everybody's interest," he adds.
"If gamers are harder to corrupt then sport will be harder to corrupt."
'Brand damage'
Matt Johnson, head of regulatory legal guidance at the Football Association, concurs.
"Prevention is better than treatment, and we likewise make a point of telling players 'you are going to be caught'."
"It is important that sport is straight, and is seen to be straight," he adds.
"If it loses that then people don't wish to bet, that is not in gambling companies' interests, and it is not in our interests."
He stated that when a great reputation was lost, the damage to a sport was "enormous".
FA rules mean players are not allowed to wager on a competitors in which they are included.
Mr says gamers need to be seen not to be capitalizing any inside understanding, which he states could trigger "brand damage" to football and its competitions.
So, even a Second Division gamer knocked out of the FA Cup in the autumn can not wager on a Manchester United v Chelsea cup final the following spring.
"We have to overcome to gamers the reputational danger to the video game," he states. "Once confidence has been harmed it is tough to get it back - mud sticks."
'Overwhelmingly legal'
If this represents the "carrot" technique, then maybe Nick Tofiluk, director of guideline at the Gambling Commission, represents the "stick".
The Gambling Commission was set up under the Gambling Act 2005 to control commercial sports betting in Great Britain.
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An ex-chief constable of West Midlands cops, Mr Tofiluk has responsibility for policing all sports betting in the UK apart from spread betting, which is the remit of the FSA.
"The overwhelming majority of sports betting wagering occurring 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 possible to weaken 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 internal Sports Betting Intelligence Unit to get and share details to sporting authorities, betting companies and policing authorities.
"Since 2007 we have actually experienced a substantial insight into world of corrupt sports betting," he says.
"We will notify sports betting of our issues, to help avoid or reduce [unlawful] activity"
In May 2010, the commission also presented a private telephone hotline for those with details or suspicions.
'Vulnerabilities'
But in a two-and-a-half year period there has been just one prosecution, a 24-year-old male who was cautioned for unfaithful in relation to greyhound racing.
However, Mr Tofiluk says there are still 8 ongoing examinations, and that much beneficial info 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 effective, then the commission would consider discontinuing a criminal examination "in favour of letting sports betting governing bodies take the lead".
Meanwhile, he states numerous of those seeking to cheat the sports betting wagering industry were experienced about sports betting and sporting individuals, and about wagering operations and the movement of money.
"They look for out the vulnerabilities of these to help in their enterprises."
Related web links
World sports betting Law Report
ICC
Professional Players Federation
Professional Footballers' Association
The FA
Betfair
Sport & Markt
bet9ja.com
BLP
Gambling Commission
