Sport wagering market aims to safeguard itself
16 September 2010
By Bill Wilson
Business reporter, BBC News
sports betting on sport is substantial company.
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 likely to have actually grown even more, with an approximated ₤ 1bn bet on the World Cup alone in the UK this summer season.
Meanwhile, German research study firm Sport & Markt estimates the total international gambling market will deserve 263bn euros (₤ 220bn) by 2012, with much of that driven by web and sports betting gaming.
But when the integrity of occasions are hit the gambling market suffers, and profits are put under hazard if clients can not wager 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 talks about the sports betting market now.
"Not only is it a considerable market in world business, it is one that is now on the front pages of papers."
Four Pakistan cricketers have been questioned by cops over spot-fixing claims relating to a test against England at Lord's last month.
Three of these players have stated 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 allegations, but was prohibited last week for six months for stopping working to report the illegal approach to him to throw frames.
There are also 2 other continuing examinations - 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 honest, straight and fair that benefits sports betting companies due to the fact that individuals will spend cash sports betting with confidence," he says.
"If you take the Pakistan claims, although unassociated to the UK controlled wagering industry ... it is not really a favorable story for wagering in the UK.
"That is due to the fact that the perception is that 'cricket is now something we may have to take care about'."
'Education'
So what can be done to avoid future scandals?
According to specialists at a World sports betting Law Report conference into sports betting, the focus needs to be on sportsmen and sportswomen.
As Simon Taylor of the Professional Players' Federation mentions: "The only individuals who can fix a match are the rivals or the referee."
His organisation represents men 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 insufficient to merely have deterrents, sanctions and disciplinary procedures, but that the way to take on prospective concerns around gamers is also through education.
Mr Taylor states rules require to be discussed plainly to players with clear examples, and by individuals they appreciate.
"Through informing gamers about sports betting wagering you enhance integrity and that remains in everybody's interest," he adds.
"If gamers are more difficult to corrupt then sport will be more difficult to corrupt."
'Brand damage'
Matt Johnson, head of regulative legal recommendations at the Football Association, concurs.
"Prevention is better than treatment, and we likewise make a point of informing gamers 'you are going to be caught'."
"It is crucial that sport is straight, and is seen to be straight," he includes.
"If it loses that then individuals don't want to bet, that is not in gaming companies' interests, and it is not in our interests."
He said that as soon as a great track record was lost, the damage to a sport was "enormous".
FA guidelines imply gamers are not enabled to bank on a competition in which they are involved.
Mr Johnson says players need to be seen not to be capitalizing any inside understanding, which he says might trigger "brand name damage" to football and its competitors.
So, even a Second Division player 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 risk to the game," he states. "Once self-confidence has been harmed it is difficult to get it back - mud sticks."
'Overwhelmingly legal'
If this represents the "carrot" approach, 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 regulate commercial sports betting in Great Britain.
An ex-chief constable of West Midlands cops, Mr Tofiluk has duty for policing all wagering in the UK apart from spread wagering, which is the remit of the FSA.
"The overwhelming majority of sports betting happening through UK operators is legal and reasonable," he says.
"But for some there is the temptation to ... corruptly interfere with the result of a sporting event.
"Such unfaithful has the possible to undermine the integrity of a sport, and it also hurts the business interests of sports betting bodies and sports betting."
The commission has actually developed an internal Sports Betting Intelligence Unit to receive and distribute information to sporting authorities, sports betting companies and policing authorities.
"Since 2007 we have actually experienced a considerable insight into world of corrupt sports betting," he says.
"We will signal sports betting of our concerns, to assist avoid or cut [illegal] activity"
In May 2010, the commission also introduced a personal telephone hotline for those with details or suspicions.
'Vulnerabilities'
But in a two-and-a-half year period there has been just one criminal prosecution, a 24-year-old male who was warned for unfaithful in relation to greyhound racing.
However, Mr Tofiluk says there are still 8 continuous examinations, which much beneficial information has likewise been passed to sports betting authorities.
He stated that where an investigation by a sport governing body was quicker, and more expense effective, then the commission would consider ceasing a criminal examination "in favour of letting sports betting governing bodies take the lead".
Meanwhile, he says a lot of those aiming to cheat the sports betting market were knowledgeable about sports betting and sporting individuals, and about sports betting operations and the movement of money.
"They look for the vulnerabilities of these to assist in their enterprises."
Related web 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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