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Sport wagering market seeks to secure itself
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16 September 2010

By Bill Wilson

Business press reporter, BBC News

sports betting on sport is big organization.

Sport England approximates the worth of costs 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 grown further, with an approximated ₤ 1bn bet on the World Cup alone in the UK this summer season.

Meanwhile, German research company Sport & Markt estimates the total global gaming market will be worth 263bn euros (₤ 220bn) by 2012, with much of that driven by web and sports betting.

But when the stability of events are hit the sports betting industry suffers, and incomes are put under hazard if consumers can not bet with confidence.

And there can have been few 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 market now.

"Not only is it a substantial market in world business, it is one that is now on the front pages of papers."

Four Pakistan cricketers have actually 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 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 stopping working to report the illegal approach 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 most significant online sporting exchanges.

"If the sport is viewed as truthful, straight and reasonable that is good for sports betting firms because people will invest cash sports betting with confidence," he states.

"If you take the Pakistan claims, although unassociated to the UK managed wagering industry ... it is not actually a favorable story for sports betting in the UK.

"That is because the perception is that 'cricket is now something we might have to beware 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 mentions: "The only people who can fix a match are the rivals or the referee."

His organisation represents males and ladies 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 not sufficient to merely have deterrents, sanctions and disciplinary treatments, however that the method to take on possible issues around gamers is also through education.

Mr Taylor says rules need to be discussed clearly to gamers with clear examples, and by individuals they respect.

"Through informing gamers about sports betting you strengthen 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 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 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 sports betting firms' interests, and it is not in our interests."

He stated that as soon as a great track record was lost, the damage to a sport was "incalculable".

FA guidelines indicate gamers are not allowed to wager on a competition in which they are included.

Mr Johnson says players have to be seen not to be cashing in on any inside knowledge, which he states might cause "brand damage" to football and its competitions.

So, even a 2nd Division player knocked out of the FA Cup in the autumn 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 confidence has been harmed it is hard to get it back - mud sticks."

'Overwhelmingly legal'

If this the "carrot" method, 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 control commercial 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 overwhelming majority of sports betting wagering taking location through UK operators is legal and reasonable," he says.

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

"Such cheating has the potential to undermine the integrity of a sport, and it likewise hurts the business interests of sports betting bodies and sports betting."

The commission has actually established an internal Sports Betting Intelligence Unit to get and disseminate info to sporting authorities, sports betting firms and policing authorities.
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"Since 2007 we have experienced a significant insight into world of corrupt sports betting wagering," he states.

"We will alert sports betting of our issues, to assist prevent or reduce [illegal] activity"

In May 2010, the commission likewise presented a personal telephone hotline for those with information or suspicions.

'Vulnerabilities'

But in a two-and-a-half year period there has been just one criminal prosecution, a 24-year-old male who was warned for unfaithful in relation to greyhound racing.

However, Mr Tofiluk states there are still 8 continuous examinations, which much helpful information has also been passed to sports betting authorities.

He stated that where an investigation by a sport governing body was quicker, and more cost effective, then the commission would think about stopping a criminal examination "in favour of letting sports betting governing bodies take the lead".

Meanwhile, he says much of those seeking to cheat the sports betting market were educated about sports betting and sporting individuals, and about wagering operations and the motion of money.

"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
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