Sport Betting Industry Looks To Protect Itself

Betting on sport is huge business.

Sport England approximates the value 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 estimated ₤ 1bn bet on the World Cup alone in the UK this summer season.

Meanwhile, German research firm Sport & Markt approximates the overall worldwide gambling market will be worth 263bn euros (₤ 220bn) by 2012, with much of that driven by web and sports gaming.

But when the integrity of occasions are hit the betting industry suffers, and earnings are put under threat if consumers can not bet with confidence.

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

High-profile

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

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

Four Pakistan cricketers have been questioned by authorities over spot-fixing accusations relating to a test versus England at Lord’s last month.

Three of these players have said they will likewise 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 claims, but was prohibited last week for six months for stopping working to report the unlawful approach to him to throw frames.

There are also 2 other continuing examinations – unrelated to Mr Higgins – into snooker.

‘Honest’

David O’Reilly is legal counsel for Betfair, among the UK’s most significant online sporting exchanges.

“If the sport is perceived as truthful, straight and fair that is excellent for betting firms because people will invest cash betting with confidence,” he says.

“If you take the Pakistan accusations, although unassociated to the UK regulated wagering market … it is not actually a favorable story for betting in the UK.

“That is due to the fact that the understanding 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 professionals at a World Sports Law Report conference into sports betting, the focus has to be on sportsmen and sportswomen.

As Simon Taylor of the Professional Players’ Federation points out: “The only people who can repair 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 player organisations, such as the Professional Footballers’ Association.

He thinks that it is not adequate to merely have deterrents, sanctions and disciplinary procedures, but that the method to tackle potential concerns around gamers is likewise through education.

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

“Through informing players about sports wagering you reinforce integrity which remains in everybody’s interest,” he includes.

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

‘Brand damage’

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

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

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

“If it loses that then individuals don’t desire to bet, that is not in gaming companies’ interests, and it is not in our interests.”

He stated that when an excellent track record was lost, the damage to a sport was “incalculable”.

FA rules mean players are not allowed to wager on a competitors in which they are involved.

Mr Johnson says gamers need to be seen not to be capitalizing any inside knowledge, which he says could trigger “brand name damage” to football and its competitors.

So, even a Second Division player knocked out of the FA Cup in the autumn can not bank on a Manchester United v Chelsea cup final the following spring.

“We have to get over to gamers the reputational threat to the video game,” he says. “Once confidence has actually been damaged it is difficult to get it back – mud sticks.”

‘Overwhelmingly legal’

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

The Gambling Commission was established under the Gambling Act 2005 to manage commercial gaming in Great Britain.

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

“The frustrating majority of sports betting happening through UK operators is legal and reasonable,” he states.

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

“Such cheating has the prospective to undermine the integrity of a sport, and it likewise hurts the business interests of sports betting bodies and sports wagering.”

The commission has actually developed an in-house Sports Betting Intelligence Unit to get and share details to sporting authorities, betting firms and policing authorities.

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

“We will notify sports of our concerns, to help avoid or reduce [illegal] activity”

In May 2010, the commission likewise introduced a confidential telephone hotline for those with info or suspicions.

‘Vulnerabilities’

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

However, Mr Tofiluk says there are still 8 continuous investigations, which much useful information has likewise been passed to sports authorities.

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

Meanwhile, he says many of those looking to cheat the sports wagering industry were knowledgeable about sports and sporting individuals, and about betting operations and the motion of money.

“They look for the vulnerabilities of these to assist in their business.”