market aims to safeguard itself
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16 September 2010

By Bill Wilson

Business reporter, BBC News

sports betting on sport is huge service.

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

And that figure is most likely to have grown further, with an estimated ₤ 1bn bet on the World Cup alone in the UK this summer.

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

But when the stability of events are hit the sports betting market suffers, and earnings are put under hazard if consumers can not bet 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 discuss the sports betting market now.

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

Four Pakistan cricketers have actually been questioned by police over spot-fixing accusations relating to a test against England at Lord's last month.

Three of these gamers have stated they will also challenge the corruption charges installed versus 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, but was banned last week for six months for failing to report the illegal technique to him to throw frames.

There are also two other continuing examinations - 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.
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"If the sport is viewed as truthful, straight and reasonable that benefits betting companies since people will invest money betting with confidence," he says.
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"If you take the Pakistan accusations, although unrelated to the UK regulated wagering industry ... it is not really a favorable story for betting in the UK.

"That is because the understanding 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 experts at a World sports betting Law Report conference into sports betting gambling, the focus has to be on sportspersons and sportswomen.

As Simon Taylor of the Professional Players' Federation mentions: "The only individuals who can fix a match are the rivals or the referee."

His organisation represents men and women 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 enough to merely have deterrents, sanctions and disciplinary treatments, however that the method to tackle prospective concerns around players is likewise through education.

Mr Taylor says rules require to be described plainly to gamers with clear examples, and by individuals they appreciate.

"Through informing gamers about sports betting you enhance stability which is 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 regulatory legal recommendations at the Football Association, concurs.

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

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

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

He said that as soon as an excellent reputation was lost, the damage to a sport was "enormous".
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FA rules mean gamers are not allowed to bank on a competitors in which they are included.

Mr Johnson states gamers have actually to be seen not to be capitalizing any inside knowledge, which he says might trigger "brand name damage" to football and its competitions.

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

"We have to overcome to gamers the reputational risk to the video game," he says. "Once self-confidence has actually been harmed it is hard to get it back - mud sticks."

'Overwhelmingly legal'

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

The Gambling Commission was established under the Gambling Act 2005 to regulate industrial gambling in Great Britain.

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

"The overwhelming bulk of sports betting wagering taking place through UK operators is legal and fair," he states.

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

"Such cheating has the possible to weaken the stability of a sport, and it also damages the business interests of sports betting bodies and sports betting wagering."

The commission has actually developed an internal Sports Betting Intelligence Unit to receive and share details to sporting authorities, sports betting firms and policing authorities.

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

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

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

'Vulnerabilities'

But in a two-and-a-half year duration there has been simply one criminal prosecution, a 24-year-old man who was cautioned for unfaithful in relation to greyhound racing.

However, Mr Tofiluk states there are still 8 continuous investigations, and that much useful details has actually also been passed to sports betting authorities.

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

Meanwhile, he states a lot of those wanting to cheat the sports betting industry were well-informed about sports betting and sporting people, and about betting operations and the movement 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