Sport wagering market wants to safeguard itself
16 September 2010
By Bill Wilson
Business reporter, BBC News
sports betting on sport is big business.
Sport England estimates the worth 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 season.
Meanwhile, German research firm Sport & Markt approximates the total international gambling 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 occasions are hit the betting industry suffers, and revenues are put under danger if customers can not bet with self-confidence.
And there can have been couple of higher-profile sport wagering stories than those affecting cricket and snooker this year.
High-profile
As Sport & Markt's Gareth Moore observes: "Everyone speak about the sports betting market now.
"Not just is it a considerable market in world company, it is one that is now on the front pages of papers."
Four Pakistan cricketers have been questioned by police over spot-fixing accusations connecting to a test against England at Lord's last month.
Three of these gamers have actually stated they will also challenge the corruption charges mounted versus the trio by the sport governing body the International Cricket Council.
Meanwhile, three-times snooker world champion John Higgins was cleared of match-fixing allegations, but was banned last week for 6 months for failing to report the illegal approach to him to toss frames.
There are also two other continuing examinations - unrelated to Mr Higgins - into snooker.
'Honest'
David O'Reilly is legal counsel for Betfair, among the UK's biggest online sporting exchanges.
"If the sport is perceived as truthful, straight and reasonable that is excellent for sports betting companies because individuals will invest cash wagering 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 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 betting Law Report conference into sports betting gambling, the focus has to be on sportsmen and sportswomen.
As Simon Taylor of the Professional Players' Federation mentions: "The only people 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 simply have deterrents, sanctions and disciplinary treatments, however that the way to tackle prospective concerns around gamers is likewise through education.
Mr Taylor states rules need to be described plainly to players with clear examples, and by individuals they respect.
"Through informing players about sports betting you reinforce stability and that 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 advice at the Football Association, agrees.
"Prevention is better than treatment, and we likewise make a point of informing gamers 'you are going to be captured'."
"It is imperative that sport is directly, and is seen to be directly," he includes.
"If it loses that then individuals do not wish to wager, that is not in betting firms' interests, and it is not in our interests."
He stated that as soon as an excellent credibility was lost, the damage to a sport was "incalculable".
FA guidelines suggest gamers are not enabled to wager on a competition in which they are included.
Mr Johnson states gamers 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 risk to the video game," he states. "Once self-confidence has actually been harmed it is difficult to get it back - mud sticks."
'Overwhelmingly legal'
If this represents the "carrot" technique, then possibly Nick Tofiluk, director of policy at the Gambling Commission, represents the "stick".
The Gambling Commission was set up under the Gambling Act 2005 to manage commercial 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 frustrating majority of sports betting wagering happening through UK operators is legal and reasonable," he states.
"But for some there is the temptation to ... corruptly disrupt the outcome of a sporting event.
"Such cheating has the prospective to undermine the integrity of a sport, and it also harms the industrial interests of sports betting bodies and sports betting."
The commission has established an in-house Sports Betting Intelligence Unit to get and disseminate information to sporting authorities, wagering firms and policing authorities.
"Since 2007 we have actually experienced a significant insight into world of corrupt sports betting," he says.
"We will signal sports betting of our issues, to help avoid or curtail [unlawful] activity"
In May 2010, the commission likewise introduced a private telephone hotline for those with info or suspicions.
'Vulnerabilities'
But in a two-and-a-half year duration there has been just one criminal prosecution, a 24-year-old man who was warned for unfaithful in relation to greyhound racing.
However, Mr Tofiluk states there are still eight ongoing examinations, which much useful info has also been passed to sports betting authorities.
He stated that where an investigation by a sport governing body was quicker, and more cost efficient, then the commission would consider terminating a criminal investigation "in favour of letting sports betting governing bodies take the lead".
Meanwhile, he states a number of those looking to cheat the sports betting wagering market were experienced about sports betting and sporting people, and about wagering operations and the movement of cash.
"They look for the vulnerabilities of these to assist in their business."
Related web 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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