Sport Betting Industry Looks To Protect Itself

Sport Betting Industry Looks To Protect Itself

Betting on sport is substantial organization.

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

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

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

But when the stability of events are hit the betting industry suffers, and earnings are put under risk if consumers can not bet with self-confidence.

And there can have been few 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 betting market now.

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

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

Three of these players have stated 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 claims, however was banned recently for 6 months for stopping working to report the illegal technique to him to throw frames.

There are also 2 other continuing investigations – not related to Mr Higgins – into snooker.

‘Honest’

David O’Reilly is legal counsel for Betfair, one of the UK’s biggest online sporting exchanges.

“If the sport is perceived as honest, straight and fair that is good for wagering firms because individuals will spend cash wagering with self-confidence,” he states.

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

“That is since the understanding is that ‘cricket is now something we might need to be mindful 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 needs to be on sportspersons and sportswomen.

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

His organisation represents men and women 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 inadequate to merely have deterrents, sanctions and disciplinary procedures, however that the method to take on potential issues around players is also through education.

Mr Taylor says guidelines need to be described plainly to gamers with clear examples, and by people they respect.

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

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

‘Brand damage’

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

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

“It is crucial that sport is straight, and is seen to be directly,” he includes.

“If it loses that then people don’t wish to bet, that is not in gaming firms’ interests, and it is not in our interests.”

He said that once a great track record was lost, the damage to a sport was “enormous”.

FA guidelines indicate gamers are not allowed to bank on a competitors in which they are involved.

Mr Johnson states gamers have actually to be seen not to be cashing in on any inside understanding, which he says could cause “brand name damage” to football and its competitors.

So, even a 2nd Division gamer 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 overcome to gamers the reputational risk to the video game,” he says. “Once confidence has actually been damaged it is tough to get it back – mud sticks.”

‘Overwhelmingly legal’

If this represents the “carrot” technique, then perhaps Nick Tofiluk, director of policy at the Gambling Commission, represents the “stick”.

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

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

“The overwhelming majority of sports betting occurring through UK operators is legal and fair,” he says.

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

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

The commission has actually established an in-house Sports Betting Intelligence Unit to receive and share information to sporting authorities, wagering companies and policing authorities.

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

“We will notify sports of our issues, to assist avoid or curtail [illegal] activity”

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

‘Vulnerabilities’

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

However, Mr Tofiluk says there are still 8 ongoing investigations, and that much beneficial info has actually also been passed to sports authorities.

He stated that where an investigation by a sport governing body was quicker, and more cost efficient, then the commission would think about stopping 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 betting market were experienced about sports and sporting individuals, and about wagering operations and the movement of money.

“They look for out the vulnerabilities of these to help in their enterprises.”