Sport wagering industry wants to secure itself
16 September 2010
By Bill Wilson
Business press reporter, BBC News
sports betting on sport is huge company.
Sport England approximates the value of spending on sport-related gaming in England grew from ₤ 1.7 bn in 1985 to ₤ 2.8 bn in 2008.
And that figure is likely to have grown further, with an approximated ₤ 1bn bet on the World Cup alone in the UK this summer season.
Meanwhile, German research firm Sport & Markt estimates the overall global gambling market will be worth 263bn euros (₤ 220bn) by 2012, with much of that driven by web and sports betting gambling.
But when the stability of occasions are hit the gaming market suffers, and revenues are put under danger if clients can not bet with confidence.
And there can have been couple of higher-profile sport sports betting stories than those affecting cricket and snooker this year.
High-profile
As Sport & Markt's Gareth Moore observes: "Everyone discuss the sports betting market now.
"Not only is it a considerable market in world service, it is one that is now on the front pages of papers."
Four Pakistan cricketers have been questioned by police over spot-fixing accusations relating to a test against England at Lord's last month.
Three of these gamers have actually stated 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 allegations, but was prohibited last week for six months for failing to report the prohibited approach 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, among the UK's greatest online sporting exchanges.
"If the sport is perceived as truthful, straight and fair that is great for sports betting firms because individuals will invest money wagering with self-confidence," he says.
"If you take the Pakistan allegations, although unassociated to the UK regulated wagering market ... it is not really a positive story for sports betting in the UK.
"That is due to the fact that the perception is that 'cricket is now something we may have 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 gambling, the focus needs to be on sportspersons and sportswomen.
As Simon Taylor of the Professional Players' Federation mentions: "The only individuals who can fix 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 player organisations, such as the Professional Footballers' Association.
He thinks that it is insufficient to merely have deterrents, sanctions and disciplinary treatments, however that the way to take on potential issues around gamers is likewise through education.
Mr Taylor says rules need to be discussed clearly to players with clear examples, and by people they respect.
"Through educating gamers about sports betting wagering you enhance integrity and that is in everyone's interest," he includes.
"If players 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, agrees.
"Prevention is better than cure, and we also make a point of telling players 'you are going to be caught'."
"It is imperative 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 gaming firms' interests, and it is not in our interests."
He stated that when a good reputation was lost, the damage to a sport was "enormous".
FA guidelines suggest gamers are not enabled to wager on a competition in which they are included.
Mr Johnson says players have to be seen not to be cashing in on any inside understanding, which he states might cause "brand damage" to football and its competitors.
So, even a 2nd Division gamer knocked out of the FA Cup in the autumn can not wager on a Manchester United v Chelsea cup last the following spring.
"We need to get over to gamers the reputational danger to the game," he says. "Once confidence has actually been harmed it is difficult to get it back - mud sticks."
'Overwhelmingly legal'
If this represents the "carrot" technique, then possibly Nick Tofiluk, director of regulation at the Gambling Commission, represents the "stick".
The Gambling Commission was set up under the Gambling Act 2005 to manage business gambling 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 sports betting, which is the remit of the FSA.
"The frustrating majority of sports betting taking place through UK operators is legal and reasonable," he says.
"But for some there is the temptation to ... corruptly hinder the result of a sporting occasion.
"Such cheating has the potential to weaken the stability of a sport, and it also hurts the business interests of sports betting bodies and sports betting."
The commission has actually established an internal Sports Betting Intelligence Unit to get and distribute details to sporting authorities, sports betting companies and policing authorities.
"Since 2007 we have actually experienced a substantial insight into world of corrupt sports betting," he states.
"We will alert sports betting of our concerns, to help avoid or reduce [unlawful] activity"
In May 2010, the commission also 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 criminal prosecution, a 24-year-old male who was warned for cheating in relation to greyhound racing.
However, Mr Tofiluk states there are still 8 ongoing investigations, which much helpful info has also been passed to sports betting authorities.
He stated that where an examination by a sport governing body was quicker, and more cost efficient, then the commission would consider discontinuing a criminal investigation "in favour of letting sports betting governing bodies take the lead".
Meanwhile, he states a number of those wanting to cheat the sports betting wagering industry were educated about sports betting and sporting individuals, and about wagering operations and the movement of cash.
"They look for the vulnerabilities of these to help 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