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Sport sports betting market wants to safeguard itself

16 September 2010
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By Bill Wilson

Business press reporter, BBC News

Betting on sport is huge business.

Sport England estimates the value of spending on sport-related gaming 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 estimated ₤ 1bn bet on the World Cup alone in the UK this summer.

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

But when the integrity of events are hit the gaming industry suffers, and incomes are put under danger if consumers can not wager 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 talks about the sports betting gambling market now.

“Not only is it a considerable market in world business, it is one that is now on the front pages of newspapers.”

Four Pakistan cricketers have been questioned by police over spot-fixing claims connecting to a test against 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 champion John Higgins was cleared of match-fixing claims, but was prohibited last week for 6 months for stopping working to report the prohibited method to him to toss frames.

There are also 2 other continuing investigations - unrelated 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 viewed as honest, straight and reasonable that is excellent for wagering firms due to the fact that individuals will invest cash sports betting with confidence,” he states.

“If you take the Pakistan claims, although unassociated to the UK managed wagering market … 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 might 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 gambling, the focus has to be on sportspersons and sportswomen.

As Simon Taylor of the Professional Players’ Federation points out: “The only people who can fix 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 player organisations, such as the Professional Footballers’ Association.

He believes that it is not sufficient to merely have deterrents, sanctions and disciplinary procedures, however that the method to tackle possible issues around gamers is also through education.

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

“Through informing gamers about sports betting you reinforce stability which is in everybody’s interest,” he includes.

“If players 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 players ‘you are going to be caught’.”

“It is vital that sport is straight, and is seen to be directly,” he adds.

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

He said that when an excellent credibility was lost, the damage to a sport was “enormous”.

FA guidelines indicate gamers are not permitted to bank on a competition in which they are included.

Mr Johnson says gamers need to be seen not to be capitalizing any inside understanding, which he says might cause “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 need to overcome to gamers the reputational risk to the game,” he states. “Once self-confidence has actually been damaged it is difficult to get it back - mud sticks.”

‘Overwhelmingly legal’

If this represents the “carrot” approach, then perhaps Nick Tofiluk, director of policy at the Gambling Commission, represents the “stick”.

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 has obligation for policing all sports betting in the UK apart from spread sports betting, which is the remit of the FSA.

“The frustrating bulk of sports betting occurring through UK operators is legal and fair,” he says.

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

“Such unfaithful has the possible to weaken the stability of a sport, and it also hurts the business interests of sports betting bodies and sports betting.”

The commission has actually developed an in-house Sports Betting Intelligence Unit to receive and distribute information to sporting authorities, wagering companies and policing authorities.

“Since 2007 we have actually experienced a considerable insight into world of corrupt sports betting wagering,” he states.

“We will signal sports betting of our concerns, to help prevent or curtail [unlawful] activity”

In May 2010, the commission likewise presented a confidential telephone hotline for those with details 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 states there are still 8 ongoing examinations, which much beneficial info 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 effective, then the commission would consider ceasing 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 market were well-informed about sports betting and sporting people, and about wagering operations and the motion of money.

“They seek 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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