Sport sports betting industry looks to secure itself

16 September 2010
bet9ja.com
By Bill Wilson

Business reporter, BBC News

sports betting on sport is huge company.

Sport England approximates the worth of spending on sport-related gaming in England grew from ₤ 1.7 bn in 1985 to ₤ 2.8 bn in 2008.
bet9ja.com
And that figure is likely to have grown even more, with an approximated ₤ 1bn bet on the World Cup alone in the UK this summer.

Meanwhile, German research study company Sport & Markt estimates the general global 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 sports betting industry suffers, and incomes are put under risk if consumers can not wager with 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 talks about the sports betting gambling market now.

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

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

Three of these gamers have stated they will also challenge the corruption charges installed versus the trio by the sport governing body the International Cricket Council.

Meanwhile, three-times snooker world champ John Higgins was cleared of match-fixing accusations, however was banned last week for six months for failing to report the prohibited approach to him to throw frames.

There are likewise two other continuing examinations - not associated 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 honest, straight and fair that benefits wagering companies because individuals will spend cash wagering with self-confidence," he states.

"If you take the Pakistan accusations, although unassociated to the UK regulated wagering industry ... it is not really a positive story for sports betting in the UK.

"That is due to the fact that the perception is that 'cricket is now something we may have to take care about'."
bet9ja.com
'Education'

So what can be done to prevent future scandals?

According to specialists 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 explains: "The only individuals who can repair a match are the rivals or the referee."

His organisation represents guys 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 insufficient to simply have deterrents, sanctions and disciplinary treatments, but that the method to tackle potential concerns around players is likewise through education.
bet9ja.com
Mr Taylor states guidelines need to be explained clearly to players with clear examples, and by people they respect.

"Through educating gamers about sports betting wagering you reinforce integrity and that remains in everyone's interest," he includes.

"If gamers are more difficult to corrupt then sport will be more difficult to corrupt."

'Brand damage'

Matt Johnson, head of regulative legal advice at the Football Association, agrees.

"Prevention is better than treatment, and we also make a point of informing gamers 'you are going to be caught'."

"It is necessary that sport is directly, and is seen to be directly," he includes.

"If it loses that then people don't wish to bet, that is not in sports betting firms' interests, and it is not in our interests."

He stated that when an excellent reputation was lost, the damage to a sport was "enormous".

FA rules mean gamers are not allowed to bank on a competitors in which they are involved.

Mr Johnson says gamers have to be seen not to be capitalizing any inside understanding, which he says could cause "brand name 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 last the following spring.

"We need to get over to gamers the reputational risk to the video 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" approach, then possibly Nick Tofiluk, director of regulation at the Gambling Commission, represents the "stick".

The Gambling Commission was set up under the Gambling Act 2005 to regulate business sports betting in Great Britain.

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

"The overwhelming majority of sports betting happening through UK operators is legal and reasonable," he states.

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

"Such cheating has the prospective to undermine the integrity of a sport, and it likewise harms the commercial interests of sports betting bodies and sports betting."

The commission has developed an internal Sports Betting Intelligence Unit to get and disseminate info to sporting authorities, sports betting firms and policing authorities.

"Since 2007 we have actually experienced a substantial insight into world of sports betting," he states.

"We will signal sports betting of our issues, to help prevent or cut [unlawful] activity"
bet9ja.com
In May 2010, the commission also presented a private telephone hotline for those with details or suspicions.

'Vulnerabilities'
bit.ly
But in a two-and-a-half year duration there has actually been just one criminal prosecution, a 24-year-old man who was cautioned for cheating in relation to greyhound racing.

However, Mr Tofiluk states there are still 8 ongoing investigations, and that much helpful information has actually likewise been passed to sports betting authorities.

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

Meanwhile, he states many of those wanting to cheat the sports betting industry were experienced about sports betting and sporting people, and about wagering operations and the movement of money.
bit.ly
"They look for the vulnerabilities of these to help in their enterprises."

Related web links

World sports betting Law Report

ICC

Professional Players Federation

Professional Footballers' Association

The FA

Betfair

Sport & Markt

BLP

Gambling Commission