Sport wagering market seeks to secure itself

16 September 2010

By Bill Wilson

Business press reporter, BBC News

sports betting on sport is huge business.

Sport England approximates the value of costs on sport-related gambling 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 company Sport & Markt estimates the total international sports betting market will be worth 263bn euros (₤ 220bn) by 2012, with much of that driven by web and sports betting gambling.

But when the stability of events are struck the gambling industry suffers, and profits are put under hazard if consumers can not bet with self-confidence.

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

High-profile

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

"Not just is it a significant market in world business, 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 against England at Lord's last month.

Three of these gamers have said they will also challenge the corruption charges installed 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 technique to him to toss frames.

There are also 2 other continuing examinations - not related to Mr Higgins - into snooker.

'Honest'

David O'Reilly is legal counsel for Betfair, one of the UK's most significant online sporting exchanges.

"If the sport is viewed as truthful, straight and reasonable that is great for wagering firms because individuals will spend cash sports betting with self-confidence," he states.

"If you take the Pakistan allegations, although unrelated to the UK regulated wagering industry ... it is not actually a favorable story for sports betting in the UK.

"That is since the understanding is that 'cricket is now something we may need 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 gambling, the focus has to be on sportspersons and sportswomen.

As Simon Taylor of the Professional Players' Federation points out: "The only individuals 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 treatments, however that the way to take on potential issues around gamers is also through education.

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

"Through informing players about sports betting wagering you strengthen stability which is in everybody's interest," he adds.

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

'Brand damage'

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

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

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

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

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

FA guidelines imply gamers are not allowed to bank on a competitors in which they are included.

Mr Johnson says gamers have actually to be seen not to be cashing in on any inside understanding, which he states might cause "brand name damage" to football and its competitors.

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

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

'Overwhelmingly legal'

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

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

An ex-chief constable of West Midlands police, 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 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 integrity of a sport, and it also damages the industrial interests of sports betting bodies and sports betting wagering."

The commission has actually established an in-house Sports Betting Intelligence Unit to receive and share information to sporting authorities, sports betting firms and policing authorities.

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

"We will alert sports betting of our concerns, to help avoid or curtail [illegal] activity"

In May 2010, the commission also presented 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 guy who was warned for cheating in relation to greyhound racing.

However, Mr Tofiluk says there are still eight continuous investigations, and that much beneficial details has actually also been passed to sports betting authorities.

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

Meanwhile, he says a number of those aiming to cheat the sports betting wagering market were knowledgeable about sports betting and sporting people, and about wagering operations and the motion of cash.

"They look for out the vulnerabilities of these to help 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

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