Sport sports betting industry looks to safeguard itself
16 September 2010
By Bill Wilson
Business reporter, BBC News
sports betting on sport is huge 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 even more, with an estimated ₤ 1bn bet on the World Cup alone in the UK this summer.
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 internet and sports betting.
But when the stability of occasions are hit the betting industry suffers, and incomes are put under risk if clients can not wager with confidence.
And there can have been few higher-profile sport betting stories than those impacting cricket and snooker this year.
High-profile
As Sport & Markt's Gareth Moore observes: "Everyone talks about the sports betting gambling market now.
"Not just is it a substantial market in world organization, it is one that is now on the front pages of newspapers."
Four Pakistan cricketers have actually been questioned by authorities over spot-fixing allegations relating to a test versus England at Lord's last month.
Three of these players 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 champion John Higgins was cleared of match-fixing claims, however was banned recently for 6 months for failing to report the unlawful approach to him to throw frames.
There are likewise 2 other continuing investigations - not related to Mr Higgins - into snooker.
'Honest'
David O'Reilly is legal counsel for Betfair, one of the UK's greatest online sporting exchanges.
"If the sport is perceived as truthful, straight and fair that benefits betting companies since people will invest cash wagering with confidence," he states.
"If you take the Pakistan accusations, although unrelated to the UK regulated wagering industry ... it is not really a favorable story for sports betting in the UK.
"That is due to the fact that the perception is that 'cricket is now something we might have to take care 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, the focus needs to be on sportsmen 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 thinks that it is inadequate to merely have deterrents, sanctions and disciplinary treatments, but that the method to tackle prospective concerns around players is also through education.
Mr Taylor states rules need to be discussed plainly to players with clear examples, and by individuals they appreciate.
"Through informing gamers about sports betting wagering you reinforce integrity which remains in everybody's interest," he adds.
"If gamers are harder to corrupt then sport will be more difficult to corrupt."
'Brand damage'
Matt Johnson, head of regulative legal suggestions at the Football Association, agrees.
"Prevention is better than treatment, and we likewise make a point of telling gamers 'you are going to be caught'."
"It is essential that sport is straight, and is seen to be directly," he adds.
"If it loses that then individuals do not wish to bet, that is not in sports betting companies' interests, and it is not in our interests."
He stated that once a great track record was lost, the damage to a sport was "incalculable".
FA guidelines suggest gamers are not permitted to wager on a competitors in which they are involved.
Mr Johnson states players need to be seen not to be cashing in on any inside knowledge, 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 autumn can not bank on a Manchester United v Chelsea cup last the following spring.
"We have to get over to gamers the reputational threat to the game," he says. "Once self-confidence has actually been damaged it is hard to get it back - mud sticks."
'Overwhelmingly legal'
If this represents the "carrot" approach, then possibly Nick Tofiluk, director of regulation at the Gambling Commission, represents the "stick".
The Gambling Commission was established under the Gambling Act 2005 to regulate business gambling in Great Britain.
An ex-chief constable of West Midlands cops, Mr Tofiluk has duty for policing all betting in the UK apart from spread sports betting, which is the remit of the FSA.
"The overwhelming majority of sports betting taking location through UK operators is legal and reasonable," he states.
"But for some there is the temptation to ... corruptly disrupt the result of a sporting occasion.
"Such unfaithful has the potential to weaken the stability of a sport, and it also harms the industrial interests of sports betting bodies and sports betting."
The commission has developed an in-house Sports Betting Intelligence Unit to receive and share details to sporting authorities, wagering firms and policing authorities.
"Since 2007 we have actually experienced a considerable insight into world of corrupt sports betting," he says.
"We will alert sports of our concerns, to assist prevent or curtail [illegal] activity"
In May 2010, the commission likewise introduced a private telephone hotline for those with details or suspicions.
'Vulnerabilities'
But in a two-and-a-half year duration there has actually been just 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, and that much useful info has actually likewise been passed to sports betting authorities.
He stated that where an investigation by a sport governing body was quicker, and more cost effective, then the commission would think about discontinuing a criminal investigation "in favour of letting sports betting governing bodies take the lead".
Meanwhile, he says a lot of those seeking to cheat the sports betting wagering industry were knowledgeable about sports betting and sporting individuals, and about wagering operations and the motion of money.
"They look for the vulnerabilities of these to assist 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