1 Sport Betting Industry Looks To Protect Itself
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Sport wagering market seeks to protect itself

16 September 2010

By Bill Wilson
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Business reporter, BBC News

Betting on sport is substantial service.

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

And that figure is most likely to have actually grown further, with an approximated ₤ 1bn bet on the World Cup alone in the UK this summer.
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Meanwhile, German research firm Sport & Markt approximates the general international gambling market will be worth 263bn euros (₤ 220bn) by 2012, with much of that driven by internet and sports betting gaming.

But when the stability of events are struck the gaming industry suffers, and revenues are put under risk if customers can not wager with confidence.

And there can have been few higher-profile sport sports betting stories than those impacting cricket and snooker this year.

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

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

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

Three of these gamers have 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 accusations, but was banned last week for six months for stopping working to report the illegal method to him to toss frames.

There are likewise 2 other continuing investigations - unrelated 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 perceived as honest, straight and reasonable that benefits sports betting companies since individuals will spend money wagering with self-confidence," he states.

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

"That is because the perception is that 'cricket is now something we might need to take care about'."
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'Education'

So what can be done to prevent future scandals?

According to professionals at a World sports betting Law Report conference into sports betting, the focus has to be on sportspersons and sportswomen.

As Simon Taylor of the Professional Players' Federation explains: "The only individuals who can fix a match are the rivals 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 believes that it is insufficient to simply have deterrents, sanctions and disciplinary procedures, however that the method to take on potential issues around gamers is likewise through education.

Mr Taylor states rules require to be discussed clearly to players with clear examples, and by individuals they respect.

"Through informing players about sports betting wagering you reinforce integrity and that is in everybody's interest," he adds.

"If players are harder 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 remedy, and we also make a point of informing players 'you are going to be caught'."

"It is important that sport is directly, and is seen to be straight," he includes.

"If it loses that then people don't wish to wager, that is not in gambling 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 rules suggest gamers are not allowed to bank on a competition in which they are involved.

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

So, even a 2nd Division player knocked out of the FA Cup in the autumn can not wager 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 says. "Once self-confidence has actually been damaged it is difficult to get it back - mud sticks."
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'Overwhelmingly legal'

If this represents the "carrot" approach, then perhaps Nick Tofiluk, director of regulation at the Gambling Commission, represents the "stick".

The Gambling Commission was established under the Gambling Act 2005 to control commercial betting in Great Britain.

An ex-chief constable of West Midlands authorities, 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 location through UK operators is legal and fair," he says.

"But for some there is the temptation to ... corruptly hinder the outcome of a sporting occasion.

"Such unfaithful has the possible to weaken the integrity of a sport, and it likewise harms the commercial interests of sports betting bodies and sports betting wagering."

The commission has actually developed an in-house Sports Betting Intelligence Unit to receive and distribute information to sporting authorities, wagering firms and policing authorities.

"Since 2007 we have actually experienced a substantial insight into world of corrupt sports betting," he states.

"We will notify sports betting of our issues, to assist prevent or reduce [prohibited] activity"

In May 2010, the commission also introduced a private telephone hotline for those with info 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 says there are still eight continuous investigations, and that much useful details has likewise been passed to sports betting authorities.

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

Meanwhile, he says a number of those looking to cheat the sports betting industry were well-informed about sports betting and sporting people, and about sports betting operations and the movement of cash.

"They look for out 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

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