Sport sports betting market seeks to protect itself

16 September 2010

By Bill Wilson

Business reporter, BBC News

Betting on sport is big business.

Sport England approximates the value of costs on sport-related betting in England grew from ₤ 1.7 bn in 1985 to ₤ 2.8 bn in 2008.

Which figure is likely to have actually grown further, with an approximated ₤ 1bn bet on the World Cup alone in the UK this summer.

Meanwhile, German research study firm Sport & Markt estimates the total global sports betting 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 events are struck the gambling market suffers, and earnings are put under hazard if customers can not bet 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 significant 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 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 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 prohibited recently for 6 months for stopping working to report the prohibited approach to him to toss frames.

There are also two other continuing investigations - not associated to Mr Higgins - into snooker.

'Honest'

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

"If the sport is perceived as honest, straight and fair that benefits betting firms since people will invest money wagering with confidence," he states.

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

"That is because the understanding is that 'cricket is now something we might need to be cautious about'."

'Education'

So what can be done to prevent future scandals?

According to professionals 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 people who can repair a match are the competitors or the referee."

His organisation represents guys and women 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 inadequate to merely have deterrents, sanctions and disciplinary procedures, however that the way to deal with prospective problems around players is likewise through education.

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

"Through informing gamers about sports betting wagering you reinforce integrity and that remains 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 regulative legal guidance at the Football Association, concurs.

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

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

"If it loses that then people do not wish to bet, that is not in gambling firms' interests, and it is not in our interests."

He stated that as soon as an excellent credibility was lost, the damage to a sport was "incalculable".

FA rules mean gamers are not enabled to wager on a competition in which they are involved.

Mr Johnson states players have actually to be seen not to be cashing in on any inside understanding, which he says might trigger "brand damage" to football and its competitions.

So, even a Second Division gamer knocked out of the FA Cup in the fall can not bet on a Manchester United v Chelsea cup final the following spring.

"We have to get over to players the reputational risk to the video game," he states. "Once confidence has actually been harmed it is tough to get it back - mud sticks."

'Overwhelmingly legal'

If this represents the "carrot" technique, then possibly Nick Tofiluk, director of policy at the Gambling Commission, represents the "stick".

The Gambling Commission was established under the Gambling Act 2005 to manage business gaming in Great Britain.

An ex-chief constable of West Midlands cops, Mr Tofiluk has responsibility 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 fair," he states.

"But for some there is the temptation to ... corruptly hinder the result of a sporting event.

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

The commission has actually established an in-house Sports Betting Intelligence Unit to receive and share information to sporting authorities, sports betting firms and policing authorities.

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

"We will alert sports betting of our concerns, to help avoid or curtail [prohibited] activity"

In May 2010, the commission likewise presented a private telephone hotline for those with information or suspicions.

'Vulnerabilities'

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

However, Mr Tofiluk states there are still 8 ongoing investigations, which much useful details has actually likewise been passed to sports betting authorities.

He said that where an investigation by a sport governing body was quicker, and more cost effective, then the commission would consider terminating a criminal investigation "in favour of letting sports betting governing bodies take the lead".

Meanwhile, he states much of those aiming to cheat the sports betting wagering industry were well-informed about sports betting and sporting people, and about sports betting operations and the movement of money.

"They look for 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

BLP

Gambling Commission

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