Sport Betting Industry Wants To Protect Itself

Sport betting market wants to protect itself

16 September 2010

By Bill Wilson

Business press reporter, BBC News

Betting on sport is big service.

Sport England approximates the worth 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 likely to have grown further, with an approximated ₤ 1bn bet on the World Cup alone in the UK this summertime.

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

But when the stability of events are struck the sports betting industry suffers, and incomes are put under hazard if clients can not bet with confidence.

And there can have been couple of 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 market now.

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

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

Three of these players have actually said they will likewise challenge the corruption charges installed 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 allegations, however was prohibited recently for six months for stopping working to report the unlawful technique 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, among the UK's biggest online sporting exchanges.

"If the sport is perceived as honest, straight and reasonable that is great for wagering firms due to the fact that people will invest cash wagering with confidence," he states.

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

"That is since the understanding is that 'cricket is now something we may have 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 points out: "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 inadequate to simply have deterrents, sanctions and disciplinary treatments, but that the method to take on prospective issues around players is likewise through education.

Mr Taylor says guidelines need to be explained clearly to gamers with clear examples, and by individuals they respect.

"Through informing players about sports betting you strengthen integrity which remains in everybody's interest," he adds.

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

'Brand damage'

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

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

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

"If it loses that then individuals do not want to bet, that is not in gaming companies' interests, and it is not in our interests."

He stated that as soon as an excellent track record was lost, the damage to a sport was "incalculable".

FA rules mean gamers are not permitted 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 states might trigger "brand damage" to football and its competitors.

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

"We need to overcome to players the reputational risk to the game," he says. "Once confidence has actually been harmed it is tough to get it back - mud sticks."

'Overwhelmingly legal'

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

The Gambling Commission was set up under the Gambling Act 2005 to regulate business gaming in Great Britain.

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

"The frustrating majority of sports betting wagering taking location through UK operators is legal and fair," he states.

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

"Such unfaithful has the prospective to undermine the stability of a sport, and it also damages the commercial interests of sports betting bodies and sports betting wagering."

The commission has actually established an in-house Sports Betting Intelligence Unit to get and distribute details to sporting authorities, betting companies and policing authorities.

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

"We will inform sports betting of our issues, to help avoid or cut [prohibited] activity"

In May 2010, the commission also introduced a confidential telephone hotline for those with info 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 cautioned for cheating in relation to greyhound racing.

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

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

Meanwhile, he says many of those looking to cheat the sports betting market were knowledgeable about sports betting and sporting individuals, and about betting operations and the movement of money.

"They seek out the vulnerabilities of these to help in their enterprises."