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Sport wagering market seeks to secure itself

16 September 2010
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By Bill Wilson

Business reporter, BBC News

Betting on sport is huge company.

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

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

Meanwhile, German research study firm Sport & Markt approximates the overall worldwide sports betting market will be worth 263bn euros (₤ 220bn) by 2012, with much of that driven by internet and sports betting.

But when the integrity of events are struck the gaming industry suffers, and incomes are put under hazard if consumers can not wager with confidence.

And there can have been few higher-profile sport wagering stories than those affecting cricket and snooker this year.

High-profile

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

"Not only is it a substantial market in world service, it is one that is now on the front pages of papers."

Four Pakistan cricketers have been questioned by cops over spot-fixing allegations associating with a test against England at Lord's last month.

Three of these gamers have said 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 accusations, but was banned recently for 6 months for stopping working to report the illegal technique to him to throw frames.

There are also 2 other continuing examinations - 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 sincere, straight and fair that is excellent for wagering companies since individuals will spend cash sports betting with confidence," he states.

"If you take the Pakistan claims, although unrelated to the UK regulated wagering market ... it is not really a positive 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 be careful about'."

'Education'

So what can be done to avoid future scandals?

According to professionals 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 repair 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 insufficient to simply have deterrents, sanctions and disciplinary treatments, however that the method to deal with prospective concerns around players is likewise through education.

Mr Taylor says guidelines require to be discussed plainly to gamers with clear examples, and by people they respect.

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

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

'Brand damage'

Matt Johnson, head of regulatory legal recommendations at the Football Association, concurs.

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

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

"If it loses that then individuals don't wish to bet, that is not in sports betting firms' interests, and it is not in our interests."

He stated that once a good track record was lost, the damage to a sport was "incalculable".

FA guidelines indicate players are not allowed to bank 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 name damage" to football and its competitors.

So, even a 2nd Division player out of the FA Cup in the autumn can not bet on a Manchester United v Chelsea cup final the following spring.

"We need to overcome to gamers the reputational danger to the video game," he states. "Once self-confidence has been damaged it is tough to get it back - mud sticks."

'Overwhelmingly legal'

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

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

An ex-chief constable of West Midlands authorities, Mr Tofiluk has duty for policing all sports betting 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 fair," he says.

"But for some there is the temptation to ... corruptly interfere with the outcome of a sporting event.

"Such cheating has the possible to undermine the stability of a sport, and it likewise hurts the commercial interests of sports betting bodies and sports betting."

The commission has actually developed an in-house Sports Betting Intelligence Unit to get and share details to sporting authorities, wagering firms and policing authorities.

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

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

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

'Vulnerabilities'

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

However, Mr Tofiluk says there are still 8 continuous examinations, which much helpful details has likewise been passed to sports betting authorities.

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

Meanwhile, he states much of those wanting to cheat the sports betting market were educated about sports betting and sporting people, and about wagering operations and the movement of cash.

"They look for the vulnerabilities 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
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BLP

Gambling Commission
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