Sport wagering market looks to safeguard itself
16 September 2010
By Bill Wilson
Business reporter, BBC News
sports betting on sport is big business.
Sport England estimates the value of costs on sport-related sports betting in England grew from ₤ 1.7 bn in 1985 to ₤ 2.8 bn in 2008.
And that 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 firm Sport & Markt estimates the total worldwide gambling market will deserve 263bn euros (₤ 220bn) by 2012, with much of that driven by web and sports betting gaming.
But when the integrity of occasions are hit the gambling market suffers, and revenues are put under hazard if customers can not wager with self-confidence.
And there can have been few higher-profile sport wagering stories than those impacting cricket and snooker this year.
High-profile
As Sport & Markt's Gareth Moore observes: "Everyone discuss the sports betting market now.
"Not only is it a significant market in world service, it is one that is now on the front pages of papers."
Four Pakistan cricketers have actually been questioned by authorities over spot-fixing accusations associating with a test versus England at Lord's last month.
Three of these gamers have actually said they will likewise 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 accusations, but was banned recently for 6 months for failing to report the illegal method to him to throw frames.
There are likewise two 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 perceived as sincere, straight and reasonable that is great for sports betting companies because individuals will spend cash sports betting with confidence," he states.
"If you take the Pakistan allegations, although unrelated to the UK controlled sports betting industry ... it is not truly a positive story for wagering in the UK.
"That is since the understanding is that 'cricket is now something we might have to be cautious about'."
'Education'
So what can be done to avoid future scandals?
According to experts at a World sports betting Law Report conference into sports betting, the focus has to be on sportspersons and sportswomen.
As Simon Taylor of the Professional Players' Federation points out: "The only people who can repair a match are the rivals or the referee."
His organisation represents men and ladies in 15 sports betting in the UK, being an umbrella organisation for all gamer organisations, such as the Professional Footballers' Association.
He believes that it is insufficient to merely have deterrents, sanctions and disciplinary treatments, but that the method to tackle prospective problems around gamers is likewise through education.
Mr Taylor states rules need to be described plainly to gamers with clear examples, and by people they appreciate.
"Through educating players about sports betting wagering you reinforce integrity which remains in everyone's interest," he includes.
"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, concurs.
"Prevention is much better than treatment, and we likewise make a point of telling players '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 people do not want to bet, that is not in sports betting companies' interests, and it is not in our interests."
He said that as soon as a good reputation was lost, the damage to a sport was "incalculable".
FA rules imply players are not permitted to wager on a competitors in which they are included.
Mr Johnson says players need to be seen not to be capitalizing any inside understanding, which he states could trigger "brand name damage" to football and its competitors.
So, even a Second Division gamer knocked out of the FA Cup in the autumn can not bank on a Manchester United v Chelsea cup final the following spring.
"We need to get over to gamers the reputational danger to the game," he says. "Once self-confidence has actually been harmed it is tough to get it back - mud sticks."
'Overwhelmingly legal'
If this represents the "carrot" method, then maybe Nick Tofiluk, director of guideline 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 cops, Mr Tofiluk has duty for policing all wagering in the UK apart from spread sports betting, which is the remit of the FSA.
"The overwhelming majority of sports betting happening 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 unfaithful has the possible to weaken the stability of a sport, and it also harms the industrial interests of sports betting bodies and sports betting."
The commission has developed an in-house Sports Betting Intelligence Unit to receive and share info to sporting authorities, wagering companies and policing authorities.
"Since 2007 we have experienced a considerable insight into world of corrupt sports betting," he says.
"We will inform sports betting of our issues, to help prevent or reduce [prohibited] activity"
In May 2010, the commission also presented a private telephone hotline for those with details or suspicions.
'Vulnerabilities'
But in a two-and-a-half year duration there has actually been simply one prosecution, a 24-year-old man who was cautioned for cheating in relation to greyhound racing.
However, Mr Tofiluk states there are still 8 continuous investigations, and that much useful details has actually also been passed to sports betting authorities.
He said that where an examination by a sport governing body was quicker, and more expense efficient, then the commission would consider stopping a criminal investigation "in favour of letting sports betting governing bodies take the lead".
Meanwhile, he states many of those looking to cheat the sports betting industry were well-informed about sports betting and sporting people, and about sports betting operations and the motion of cash.
"They look for out 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
The BBC is not responsible for the material of external sites.
