Sport Betting Industry Looks To Protect Itself

Betting on sport is huge company.

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

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

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

But when the stability of occasions are hit the gaming market suffers, and earnings are put under threat if customers can not bet with confidence.

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

High-profile

As Sport & Markt's Gareth Moore observes: "Everyone discuss the sports betting market now.

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

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

Three of these gamers have actually said 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 allegations, however was prohibited last week for six months for stopping working to report the prohibited technique to him to toss 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 fair that is great for betting firms because individuals will spend cash betting with self-confidence," he states.

"If you take the Pakistan allegations, although unassociated to the UK regulated wagering industry ... it is not really a positive story for wagering in the UK.

"That is because the perception is that 'cricket is now something we may need 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 has to be on sportspersons and sportswomen.

As Simon Taylor of the Professional Players' Federation mentions: "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 player organisations, such as the Professional Footballers' Association.

He thinks that it is insufficient to merely have deterrents, sanctions and disciplinary procedures, however that the way to take on possible problems around players is also through education.

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

"Through educating gamers about sports betting you strengthen integrity which remains in everybody's interest," he includes.

"If gamers are more difficult to corrupt then sport will be more difficult to corrupt."

'Brand damage'

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

"Prevention is much better than remedy, and we also make a point of telling players 'you are going to be caught'."

"It is essential that sport is straight, and is seen to be directly," he adds.

"If it loses that then individuals don't want to bet, that is not in gaming firms' interests, and it is not in our interests."

He said that when an excellent credibility was lost, the damage to a sport was "enormous".

FA guidelines suggest gamers are not permitted to wager on a competition in which they are included.

Mr Johnson says gamers have to be seen not to be cashing in on any inside knowledge, which he says could trigger "brand name damage" to football and its competitions.

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

"We have to overcome to gamers the reputational threat to the video game," he states. "Once self-confidence has actually been damaged it is difficult to get it back - mud sticks."

'Overwhelmingly legal'

If this represents the "carrot" approach, then possibly Nick Tofiluk, director of guideline at the Gambling Commission, represents the "stick".

The Gambling Commission was set up under the Gambling Act 2005 to control industrial gambling 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 betting, which is the remit of the FSA.

"The overwhelming majority of sports wagering 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 possible to weaken the stability of a sport, and it also hurts the commercial interests of sports bodies and sports wagering."

The commission has developed an internal Sports Betting Intelligence Unit to get and share information to sporting authorities, betting firms and policing authorities.

"Since 2007 we have actually experienced a considerable insight into world of corrupt sports betting," he says.

"We will inform sports of our concerns, to assist prevent or reduce [prohibited] activity"

In May 2010, the commission also introduced a private telephone hotline for those with details or suspicions.

'Vulnerabilities'

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

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

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

Meanwhile, he says much of those wanting to cheat the sports wagering industry were educated about sports and sporting people, and about betting operations and the movement of money.

"They look for out the vulnerabilities of these to assist in their business."