Sport Betting Industry Looks To Protect Itself

Sport sports betting market looks to safeguard itself

16 September 2010

By Bill Wilson

Business press reporter, BBC News

sports betting on sport is huge business.

Sport England approximates the worth 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 grown even more, with an approximated ₤ 1bn bet on the World Cup alone in the UK this summer.

Meanwhile, German research firm Sport & Markt estimates the general worldwide gaming market will be worth 263bn euros (₤ 220bn) by 2012, with much of that driven by internet and sports betting.

But when the stability of events are struck the gambling industry suffers, and earnings are put under hazard if clients can not wager with self-confidence.

And there can have been few 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 market now.

“Not just is it a significant market in world organization, it is one that is now on the front pages of papers.”

Four Pakistan cricketers have been questioned by cops over spot-fixing claims associating with a test versus England at Lord’s last month.

Three of these gamers have actually stated they will likewise 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 accusations, but was banned last week for six months for stopping working to report the prohibited technique to him to toss frames.

There are likewise two other continuing examinations – not related 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 excellent for sports betting companies due to the fact that people will invest money sports betting with self-confidence,” he states.

“If you take the Pakistan claims, although unrelated to the UK regulated betting market … it is not actually a favorable story for wagering in the UK.

“That is since the perception is that ‘cricket is now something we might need to be cautious 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 has to be on sportsmen 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.”

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 simply have deterrents, sanctions and disciplinary procedures, but that the way to take on potential problems around players is also through education.

Mr Taylor states guidelines require to be explained clearly to players with clear examples, and by people they appreciate.

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

“If players are more difficult to corrupt then sport will be more difficult to corrupt.”

‘Brand damage’

Matt Johnson, head of regulatory legal advice 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 necessary that sport is directly, and is seen to be directly,” he includes.

“If it loses that then people do not wish to bet, that is not in gaming companies’ interests, and it is not in our interests.”

He said that as soon as a good reputation was lost, the damage to a sport was “enormous”.

FA rules indicate players are not allowed to bank on a competition in which they are included.

Mr Johnson says gamers need to be seen not to be capitalizing any inside knowledge, 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 gamers the reputational threat 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 control business gaming in Great Britain.

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

“The overwhelming bulk of sports betting wagering occurring through UK operators is legal and reasonable,” he says.

“But for some there is the temptation to … corruptly hinder the outcome of a sporting event.

“Such cheating has the possible to weaken the of a sport, and it likewise hurts the business interests of sports betting bodies and sports betting.”

The commission has established an in-house Sports Betting Intelligence Unit to get and distribute info to sporting authorities, sports betting 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 assist prevent or reduce [unlawful] activity”

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

‘Vulnerabilities’

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

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

He stated that where an examination by a sport governing body was quicker, and more cost reliable, then the commission would think about terminating 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 sports betting operations and the motion of cash.

“They look for the vulnerabilities of these to assist in their business.”

Related internet links

World sports betting Law Report

ICC

Professional Players Federation

Professional Footballers’ Association

The FA

Betfair

Sport & Markt

BLP

Gambling Commission