Sport Betting Industry Seeks To Protect Itself

Betting on sport is huge business.

Sport England estimates the value of costs on sport-related betting in England grew from ₤ 1.7 bn in 1985 to ₤ 2.8 bn in 2008.

Which figure is likely to have actually grown even more, with an approximated ₤ 1bn bet on the World Cup alone in the UK this summer season.

Meanwhile, German research company Sport & Markt approximates the total international gambling market will deserve 263bn euros (₤ 220bn) by 2012, with much of that driven by web and sports betting.

But when the integrity of occasions are hit the gaming industry suffers, and profits are put under hazard if customers can not wager with confidence.

And there can have been couple of higher-profile sport betting stories than those affecting cricket and snooker this year.

High-profile

As Sport & Markt’s Gareth Moore observes: “Everyone discuss the sports gambling market now.

“Not just is it a significant market in world business, it is one that is now on the front pages of papers.”

Four Pakistan cricketers have been questioned by cops over spot-fixing accusations connecting to a test against England at Lord’s last month.

Three of these gamers have 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 champ John Higgins was cleared of match-fixing claims, however was prohibited last week for six months for failing 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, among the UK’s greatest online sporting exchanges.

“If the sport is perceived as honest, straight and fair that is great for betting firms due to the fact that people will invest cash betting with confidence,” he says.

“If you take the Pakistan accusations, although unrelated to the UK managed wagering industry … it is not really a positive story for betting in the UK.

“That is because the perception is that ‘cricket is now something we may have to take care about’.”

‘Education’

So what can be done to avoid future scandals?

According to experts at a World Sports Law Report conference into sports betting, the focus needs to be on sportspersons and sportswomen.

As Simon Taylor of the Professional Players’ Federation explains: “The only individuals who can fix a match are the competitors or the referee.”

His organisation represents males and females in 15 sports in the UK, being an umbrella organisation for all gamer organisations, such as the Professional Footballers’ Association.

He believes that it is insufficient to simply have deterrents, sanctions and disciplinary procedures, however that the way to tackle potential concerns around players is also through education.

Mr Taylor states rules need to be discussed plainly to players with clear examples, and by people they appreciate.

“Through informing players about sports betting you reinforce stability which is in everybody’s interest,” he includes.

“If gamers are harder to corrupt then sport will be more difficult to corrupt.”

‘Brand damage’

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

“Prevention is better than treatment, and we likewise make a point of informing gamers ‘you are going to be captured’.”

“It is necessary that sport is directly, and is seen to be directly,” he adds.

“If it loses that then people do not want to bet, that is not in betting companies’ 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 “enormous”.

FA rules imply gamers are not allowed to wager on a competition in which they are included.

Mr Johnson states gamers need to be seen not to be cashing in on any inside understanding, which he says might 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 bet on a Manchester United v Chelsea cup final the following spring.

“We need to overcome to players the reputational danger to the game,” he states. “Once confidence has been harmed it is tough to get it back – mud sticks.”

‘Overwhelmingly legal’

If this represents the “carrot” approach, then maybe Nick Tofiluk, director of guideline at the Gambling Commission, represents the “stick”.

The Gambling Commission was set up under the Gambling Act 2005 to regulate industrial gambling in Great Britain.

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

“The overwhelming majority of sports wagering taking location through UK operators is legal and reasonable,” he says.

“But for some there is the temptation to … corruptly hinder the result of a sporting event.

“Such cheating has the potential to weaken the integrity of a sport, and it likewise damages the industrial interests of sports bodies and sports betting.”

The commission has actually established an internal Sports Betting Intelligence Unit to receive and disseminate details to sporting authorities, wagering companies and policing authorities.

“Since 2007 we have experienced a significant insight into world of corrupt sports betting,” he states.

“We will inform sports of our concerns, to help avoid or reduce [unlawful] 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 period there has actually been simply one criminal prosecution, a 24-year-old guy who was warned for cheating in relation to greyhound racing.

However, Mr Tofiluk states there are still 8 continuous investigations, and that much helpful details has actually also been passed to sports authorities.

He said that where an investigation by a sport governing body was quicker, and more expense efficient, then the commission would think about ceasing a criminal investigation “in favour of letting sports governing bodies take the lead”.

Meanwhile, he states a number of those wanting to cheat the sports wagering market were knowledgeable about sports and sporting individuals, and about betting operations and the movement of money.

“They seek out the vulnerabilities of these to assist in their business.”