Sport wagering market seeks to protect itself

16 September 2010

By Bill Wilson

Business press reporter, BBC News

sports betting on sport is huge service.

Sport England estimates the value of costs on sport-related betting in England grew from ₤ 1.7 bn in 1985 to ₤ 2.8 bn in 2008.
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Which figure is likely to have actually grown even more, with an estimated ₤ 1bn bet on the World Cup alone in the UK this summertime.
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Meanwhile, German research study company Sport & Markt estimates the general 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 occasions are hit the betting market suffers, and revenues are put under hazard if customers can not bet with confidence.

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

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

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

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

Three of these players have actually stated 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 last week for six months for stopping working to report the unlawful technique to him to toss frames.

There are likewise two other continuing investigations - 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 honest, straight and fair that is great for sports betting firms since people will invest money wagering with confidence," he states.

"If you take the Pakistan accusations, although unrelated to the UK controlled sports betting industry ... it is not actually a positive story for betting in the UK.

"That is due to the fact that the perception is that 'cricket is now something we might have to beware 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, the focus has to be on sportsmen and sportswomen.
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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 not enough to simply have deterrents, sanctions and disciplinary procedures, however that the method to deal with problems around gamers is likewise through education.

Mr Taylor says guidelines need to be discussed plainly to players with clear examples, and by individuals they respect.

"Through informing players about sports betting you enhance stability and that is 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 advice at the Football Association, agrees.

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

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

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

He stated that as soon as a good track record was lost, the damage to a sport was "enormous".

FA rules mean players are not permitted to bank on a competition in which they are included.

Mr Johnson says players need to be seen not to be capitalizing any inside knowledge, which he says might cause "brand damage" to football and its competitors.

So, even a 2nd 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 players the reputational danger to the game," he states. "Once confidence has actually been harmed it is hard to get it back - mud sticks."

'Overwhelmingly legal'

If this represents the "carrot" method, then perhaps Nick Tofiluk, director of policy at the Gambling Commission, represents the "stick".
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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 obligation for policing all betting in the UK apart from spread betting, which is the remit of the FSA.

"The frustrating majority of sports betting happening through UK operators is legal and fair," he says.

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

"Such unfaithful has the prospective to weaken the stability of a sport, and it likewise hurts the business interests of sports betting bodies and sports betting wagering."

The commission has established an internal Sports Betting Intelligence Unit to get and disseminate information to sporting authorities, betting companies 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 issues, to assist prevent or reduce [prohibited] 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 period there has been just one criminal prosecution, a 24-year-old male who was warned for cheating in relation to greyhound racing.

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

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

Meanwhile, he says a lot of those wanting to cheat the sports betting wagering industry were educated 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."
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Related web links

World sports betting Law Report

ICC

Professional Players Federation

Professional Footballers' Association

The FA

Betfair

Sport & Markt

BLP

Gambling Commission