Sport Betting Industry Looks To Protect Itself

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Sport sports betting industry seeks to safeguard itself
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16 September 2010
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By Bill Wilson


Business press reporter, BBC News


sports betting on sport is huge business.


Sport England approximates 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 most likely to have actually grown further, with an estimated ₤ 1bn bet on the World Cup alone in the UK this summer.


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


But when the stability of occasions are struck the gaming market suffers, and revenues are put under threat if clients can not wager with confidence.


And there can have been few higher-profile sport wagering stories than those affecting cricket and snooker this year.


High-profile


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


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


Four Pakistan cricketers have actually been questioned by cops over spot-fixing accusations 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 champ John Higgins was cleared of match-fixing claims, but was prohibited last week for six months for failing to report the illegal technique to him to throw frames.


There are also two 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 viewed as honest, straight and reasonable that is excellent for betting firms because individuals will spend cash betting with self-confidence," he says.


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


"That is since the understanding is that 'cricket is now something we might need to be cautious 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 needs to be on sportsmen and sportswomen.


As Simon Taylor of the Professional Players' Federation mentions: "The only people who can repair a match are the rivals or the referee."


His organisation represents males and women in 15 sports betting in the UK, being an umbrella organisation for all player organisations, such as the Professional Footballers' Association.


He believes that it is to simply have deterrents, sanctions and disciplinary procedures, but that the method to deal with possible concerns around players is likewise through education.


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


"Through educating gamers about sports betting wagering you reinforce integrity 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 suggestions at the Football Association, concurs.


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


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


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


He stated that once a good track record was lost, the damage to a sport was "incalculable".


FA rules indicate gamers are not enabled to bank on a competitors in which they are involved.


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


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 have to get over to players the reputational risk to the game," he says. "Once self-confidence has 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 regulate commercial gambling 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 sports betting, which is the remit of the FSA.


"The overwhelming bulk of sports betting occurring through UK operators is legal and fair," he says.


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


"Such unfaithful has the possible to undermine the stability of a sport, and it likewise harms the industrial interests of sports betting bodies and sports betting wagering."


The commission has established an in-house Sports Betting Intelligence Unit to receive and disseminate info to sporting authorities, sports betting companies and policing authorities.


"Since 2007 we have experienced a substantial insight into world of corrupt sports betting wagering," he states.


"We will alert sports betting of our issues, to help avoid or cut [illegal] activity"


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


'Vulnerabilities'


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


However, Mr Tofiluk says there are still eight continuous investigations, which much helpful details has actually also been passed to sports betting authorities.


He stated that where an investigation 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 betting governing bodies take the lead".


Meanwhile, he states much of those seeking to cheat the sports betting industry were knowledgeable about sports betting and sporting people, and about sports betting operations and the motion of money.


"They seek 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
bit.ly

BLP


Gambling Commission
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