Sport sports betting industry wants to secure itself
16 September 2010
By Bill Wilson
Business reporter, BBC News
sports betting on sport is huge business.
Sport England estimates the value of spending on sport-related gambling in England grew from ₤ 1.7 bn in 1985 to ₤ 2.8 bn in 2008.
And that figure is most likely to have actually grown even more, with an approximated ₤ 1bn bet on the World Cup alone in the UK this summertime.
Meanwhile, German research company Sport & Markt estimates the overall worldwide gaming 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 struck the gambling industry suffers, and earnings are put under risk if consumers can not wager with self-confidence.
And there can have been couple of higher-profile sport sports betting 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 considerable market in world business, it is one that is now on the front pages of papers."
Four Pakistan cricketers have actually been questioned by authorities over spot-fixing claims associating with a test versus England at Lord's last month.
Three of these players have actually said 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 accusations, however was banned last week for six months for stopping working 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, among the UK's greatest online sporting exchanges.
"If the sport is perceived as sincere, straight and reasonable that benefits sports betting firms since individuals will invest cash wagering with self-confidence," he says.
"If you take the Pakistan accusations, although unassociated to the UK managed wagering market ... it is not truly a favorable story for wagering in the UK.
"That is due to the fact that the understanding is that 'cricket is now something we may need 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 gambling, the focus needs to be on sportsmen and sportswomen.
As Simon Taylor of the Professional Players' Federation points out: "The only individuals 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 believes that it is not enough to simply have deterrents, sanctions and disciplinary treatments, however that the way to deal with potential concerns around gamers is likewise through education.
Mr Taylor states rules need to be explained clearly to gamers with clear examples, and by individuals they respect.
"Through educating players about sports betting you reinforce integrity and that remains 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 suggestions at the Football Association, concurs.
"Prevention is much better than cure, and we also make a point of informing gamers 'you are going to be caught'."
"It is crucial that sport is directly, and is seen to be directly," he adds.
"If it loses that then individuals do not wish to bet, that is not in sports betting companies' interests, and it is not in our interests."
He stated that once a great track record was lost, the damage to a sport was "enormous".
FA guidelines imply players are not allowed to bank on a competition in which they are involved.
Mr Johnson states gamers need to be seen not to be cashing in on any inside knowledge, which he says might cause "brand 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 final the following spring.
"We have to overcome to players the reputational risk to the video game," he states. "Once confidence has actually been damaged it is difficult to get it back - mud sticks."
'Overwhelmingly legal'
If this represents the "carrot" method, then perhaps Nick Tofiluk, director of guideline at the Gambling Commission, represents the "stick".
The Gambling Commission was established under the Gambling Act 2005 to manage business sports betting in Great Britain.
An ex-chief constable of West Midlands police, Mr Tofiluk has duty for policing all wagering in the UK apart from spread wagering, which is the remit of the FSA.
"The frustrating bulk of sports betting taking location through UK operators is legal and fair," he states.
"But for some there is the temptation to ... corruptly hinder the outcome of a sporting occasion.
"Such cheating has the prospective to weaken 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 receive and disseminate information to sporting authorities, sports betting firms and policing authorities.
"Since 2007 we have experienced a considerable insight into world of corrupt sports betting wagering," he states.
"We will alert sports betting of our issues, to help prevent or curtail [illegal] activity"
In May 2010, the commission likewise presented a personal telephone hotline for those with details or suspicions.
'Vulnerabilities'
But in a two-and-a-half year duration there has been just one prosecution, a 24-year-old man who was cautioned for unfaithful in relation to greyhound racing.
However, Mr Tofiluk says there are still eight ongoing examinations, and that much helpful info has also been passed to sports betting authorities.
He stated that where an examination by a sport governing body was quicker, and more expense reliable, then the commission would think about ceasing a criminal investigation "in favour of letting sports betting governing bodies take the lead".
Meanwhile, he says much of those looking to cheat the sports betting industry were well-informed about sports betting and sporting individuals, and about wagering operations and the motion of money.
"They look for out the vulnerabilities of these to help 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