Sport betting market wants 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 big service.

Sport England approximates the value of costs 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 grown further, with an estimated ₤ 1bn bet on the World Cup alone in the UK this summer.

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

But when the integrity of occasions are hit the gambling industry suffers, and earnings are put under danger if consumers can not bet with self-confidence.

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

High-profile

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

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

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

Three of these players have said they will also challenge the corruption charges mounted 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 allegations, but was banned recently for six months for stopping working to report the illegal technique to him to throw frames.

There are likewise 2 other continuing investigations - not related to Mr Higgins - into snooker.

'Honest'

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

"If the sport is as truthful, straight and reasonable that benefits sports betting firms because individuals will invest cash wagering with confidence," he states.

"If you take the Pakistan claims, although unassociated to the UK regulated sports betting market ... it is not really a favorable story for sports betting in the UK.

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

'Education'

So what can be done to prevent future scandals?

According to experts at a World sports betting Law Report conference into sports betting gambling, the focus has to be on sportsmen and sportswomen.
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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 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 insufficient to merely have deterrents, sanctions and disciplinary treatments, however that the way to tackle possible issues around players is also through education.

Mr Taylor says guidelines require to be explained clearly to gamers with clear examples, and by people they respect.

"Through informing gamers about sports betting you enhance stability and that is in everybody's interest," he includes.

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

'Brand damage'

Matt Johnson, head of regulative legal advice at the Football Association, concurs.

"Prevention is better than treatment, and we also make a point of telling players 'you are going to be captured'."

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

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

He said that once an excellent reputation was lost, the damage to a sport was "enormous".

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

Mr Johnson states 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 2nd Division player knocked out of the FA Cup in the fall can not bank on a Manchester United v Chelsea cup last the following spring.

"We have to get over to players the reputational threat 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" technique, 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 commercial betting in Great Britain.

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

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

"But for some there is the temptation to ... corruptly interfere with the outcome of a sporting event.

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

The commission has established an in-house Sports Betting Intelligence Unit to get and disseminate info to sporting authorities, betting firms and policing authorities.

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

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

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

'Vulnerabilities'

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

However, Mr Tofiluk says there are still 8 ongoing examinations, and that much beneficial information has also been passed to sports betting authorities.
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He said that where an investigation by a sport governing body was quicker, and more expense effective, then the commission would consider terminating a criminal examination "in favour of letting sports betting governing bodies take the lead".

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

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

Related internet links

World sports betting Law Report

ICC

Professional Players Federation

Professional Footballers' Association

The FA

Betfair

Sport & Markt

BLP

Gambling Commission

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