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Sport sports betting market wants to secure itself
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16 September 2010
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By Bill Wilson

Business press reporter, BBC News

sports betting on sport is huge company.

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

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

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

But when the integrity of events are hit the gambling industry suffers, and profits are put under risk if clients 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 speak about the sports betting gambling market now.

"Not only is it a considerable market in world organization, 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 against England at Lord's last month.

Three of these players have 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 banned last week for 6 months for failing to report the prohibited approach to him to throw frames.

There are also 2 other continuing investigations - not related 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 sincere, straight and fair that is good for sports betting companies due to the fact that individuals will invest cash wagering with self-confidence," he states.

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

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

'Education'

So what can be done to avoid future scandals?

According to experts at a World sports betting Law Report conference into sports betting gambling, the focus has to be on sportsmen 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 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 thinks that it is insufficient to merely have deterrents, sanctions and disciplinary procedures, but that the method to take on potential concerns around players is also through education.

Mr Taylor states guidelines need to be discussed plainly to gamers with clear examples, and by people they appreciate.

"Through educating players about sports betting wagering you reinforce integrity which is in everyone's interest," he includes.

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

'Brand damage'

Matt Johnson, head of regulatory legal advice at the Football Association, agrees.

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

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

"If it loses that then people don't wish to bet, that is not in sports betting companies' 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 guidelines indicate players are not allowed to wager on a competition in which they are involved.

Mr Johnson says players need to be seen not to be capitalizing any inside knowledge, which he states could trigger "brand damage" to football and its competitions.

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

"We have to get over to players the reputational threat to the video game," he says. "Once confidence has been damaged it is tough to get it back - mud sticks."

'Overwhelmingly legal'

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

The Gambling Commission was set up under the Gambling Act 2005 to control industrial gambling in Great Britain.

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

"The frustrating majority of sports betting happening through UK operators is legal and reasonable," he says.

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

"Such cheating has the possible to undermine the stability of a sport, and it also harms the industrial interests of sports betting bodies and sports betting."

The commission has established an internal Sports Betting Intelligence Unit to get and disseminate details to sporting authorities, wagering companies and policing authorities.

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

"We will notify sports betting of our concerns, to assist avoid or cut [unlawful] activity"

In May 2010, the commission also presented a private 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.
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However, Mr Tofiluk says there are still eight ongoing investigations, which much helpful info has also been passed to sports betting authorities.

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

Meanwhile, he says a number of those seeking to cheat the sports betting market were educated about sports betting and sporting individuals, and about sports betting operations and the movement of cash.

"They look for out 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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