bit.ly
Sport wagering industry wants to protect itself
bit.ly
16 September 2010

By Bill Wilson

Business reporter, BBC News

sports betting on sport is huge company.

Sport England estimates the value of costs on sport-related gambling 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 estimated ₤ 1bn bet on the World Cup alone in the UK this summertime.

Meanwhile, German research company Sport & Markt approximates the total international sports betting market will be worth 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 sports betting market suffers, and profits are put under risk 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 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 actually been questioned by police over spot-fixing claims associating with a test versus England at Lord's last month.

Three of these gamers have actually 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 claims, however was prohibited last week for six months for failing to report the illegal method to him to throw frames.

There are likewise two other continuing investigations - unrelated 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 viewed as truthful, straight and fair that benefits sports betting firms since people will invest cash wagering with self-confidence," he says.

"If you take the Pakistan accusations, although unassociated to the UK regulated sports betting industry ... it is not truly a positive story for wagering in the UK.

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

'Education'

So what can be done to prevent future scandals?

According to experts 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 explains: "The only individuals who can repair a match are the competitors or the referee."

His organisation represents men and ladies 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 not sufficient to simply have deterrents, sanctions and disciplinary procedures, however that the way to deal with potential problems around players is also through education.

Mr Taylor states guidelines require to be described plainly to players with clear examples, and by people they respect.

"Through informing players about sports betting you reinforce stability which is in everybody's interest," he includes.

"If players are harder to corrupt then sport will be more difficult to corrupt."

'Brand damage'

Matt Johnson, head of regulative legal advice at the Football Association, concurs.

"Prevention is better than remedy, and we likewise make a point of telling gamers 'you are going to be captured'."

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

"If it loses that then individuals don't want to wager, that is not in gaming firms' interests, and it is not in our interests."

He stated that when a great credibility was lost, the damage to a sport was "enormous".

FA guidelines imply players are not allowed to bet on a competition in which they are included.

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

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

"We need to overcome to gamers the reputational risk to the game," he says. "Once confidence has been damaged 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 regulate business sports betting in Great Britain.

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

"The frustrating bulk of sports betting 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 potential to weaken the integrity of a sport, and it likewise 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 disseminate info to sporting authorities, wagering firms and policing authorities.

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

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

In May 2010, the commission likewise introduced a confidential 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 man who was warned for unfaithful in relation to greyhound racing.

However, Mr Tofiluk says there are still 8 ongoing investigations, and that much helpful info has likewise been passed to sports betting authorities.

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

Meanwhile, he says numerous of those aiming to cheat the sports betting wagering market were knowledgeable about sports betting and sporting individuals, and about wagering operations and the motion of money.

"They seek out the 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
bet9ja.com
BLP

Gambling Commission
bet9ja.com