Sport Betting Industry Looks To Protect Itself

Betting on sport is huge service.

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

Which figure is likely to have grown further, with an approximated ₤ 1bn bet on the World Cup alone in the UK this summer season.

Meanwhile, German research company Sport & Markt estimates the total worldwide betting market will deserve 263bn euros (₤ 220bn) by 2012, with much of that driven by web and sports betting gaming.

But when the stability of occasions are hit the betting market suffers, and revenues are put under risk if customers can not bet with 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 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 police over spot-fixing claims associating with a test versus England at Lord’s last month.

Three of these players 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 allegations, but was prohibited last week for six months for failing to report the unlawful technique to him to toss frames.

There are also 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 sincere, straight and fair that benefits wagering companies because people will spend money wagering with self-confidence,” he says.

“If you take the Pakistan allegations, although unassociated to the UK managed betting industry … it is not actually a favorable story for betting in the UK.

“That is because the understanding is that ‘cricket is now something we may need to beware about’.”

‘Education’

So what can be done to prevent future scandals?

According to experts at a World Sports Law Report conference into sports gambling, the focus needs to be on sportsmen 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 in the UK, being an umbrella organisation for all gamer organisations, such as the Professional Footballers’ Association.

He believes that it is inadequate to simply have deterrents, sanctions and disciplinary treatments, but that the way to tackle potential concerns around players is likewise through education.

Mr Taylor says guidelines require to be explained clearly to players with clear examples, and by people they appreciate.

“Through informing gamers about sports betting you strengthen stability and that 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 regulative legal guidance at the Football Association, agrees.

“Prevention is better than cure, and we also make a point of informing gamers ‘you are going to be caught’.”

“It is important that sport is directly, and is seen to be straight,” he includes.

“If it loses that then individuals do not desire to bet, that is not in gambling companies’ interests, and it is not in our interests.”

He stated that when a good reputation was lost, the damage to a sport was “enormous”.

FA guidelines suggest players are not permitted to bet on a competition in which they are involved.

Mr Johnson says players have to be seen not to be cashing in on any inside understanding, which he says might trigger “brand damage” to football and its competitors.

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

“We have to overcome to players the reputational risk to the game,” he says. “Once self-confidence has been harmed it is tough to get it back – mud sticks.”

‘Overwhelmingly legal’

If this represents the “carrot” technique, then maybe Nick Tofiluk, director of regulation at the Gambling Commission, represents the “stick”.

The Gambling Commission was established under the Gambling Act 2005 to control commercial gaming in Great Britain.

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

“The overwhelming majority of sports wagering taking location through UK operators is legal and reasonable,” he says.

“But for some there is the temptation to … corruptly disrupt the result of a sporting event.

“Such cheating has the prospective to weaken the integrity of a sport, and it also hurts the industrial interests of sports bodies and sports betting.”

The commission has actually established an internal Sports Betting Intelligence Unit to get and distribute information to sporting authorities, wagering companies and policing authorities.

“Since 2007 we have actually experienced a substantial insight into world of corrupt sports wagering,” he says.

“We will alert sports of our issues, to help prevent or curtail [illegal] activity”

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

‘Vulnerabilities’

But in a two-and-a-half year period there has actually been simply one criminal prosecution, a 24-year-old guy who was warned for unfaithful in relation to greyhound racing.

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

He said that where an investigation by a sport governing body was quicker, and more cost reliable, then the commission would consider stopping a criminal investigation “in favour of letting sports governing bodies take the lead”.

Meanwhile, he states numerous of those looking to cheat the sports wagering industry were experienced about sports and sporting people, and about betting operations and the movement of money.

“They look for out the vulnerabilities of these to help in their business.”