Sport wagering industry aims to secure itself

16 September 2010
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By Bill Wilson
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Business press reporter, BBC News

sports betting on sport is big business.

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

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

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

But when the stability of occasions are struck the gaming industry suffers, and earnings are put under risk if consumers can not bet with confidence.

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

High-profile

As Sport & Moore observes: "Everyone talks about the sports betting market now.

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

Four Pakistan cricketers have actually been questioned by police over spot-fixing claims associating with a test against England at Lord's last month.

Three of these gamers have actually said they will likewise challenge the corruption charges mounted versus the trio by the sport governing body the International Cricket Council.

Meanwhile, three-times snooker world champion John Higgins was cleared of match-fixing accusations, however was banned recently for 6 months for failing to report the illegal technique to him to throw frames.

There are likewise two other continuing examinations - unrelated to Mr Higgins - into snooker.

'Honest'

David O'Reilly is legal counsel for Betfair, one of the UK's most significant online sporting exchanges.

"If the sport is viewed as sincere, straight and reasonable that benefits sports betting companies since individuals will invest cash sports betting with confidence," he states.

"If you take the Pakistan accusations, although unassociated to the UK managed sports betting industry ... it is not really a favorable story for wagering 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 betting Law Report conference into sports betting gambling, the focus needs to be on sportspersons and sportswomen.

As Simon Taylor of the Professional Players' Federation points out: "The only individuals who can repair a match are the competitors or the referee."

His organisation represents males and females in 15 sports betting in the UK, being an umbrella organisation for all gamer organisations, such as the Professional Footballers' Association.
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He thinks that it is not adequate to simply have deterrents, sanctions and disciplinary procedures, however that the method to take on prospective issues around players is likewise through education.

Mr Taylor says rules require to be described clearly to players with clear examples, and by individuals they appreciate.

"Through informing gamers about sports betting wagering you strengthen integrity which is in everyone's interest," he adds.

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

'Brand damage'

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

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

"It is crucial that sport is straight, and is seen to be straight," he includes.

"If it loses that then individuals don't wish to bet, that is not in betting firms' 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 "incalculable".

FA guidelines mean gamers are not permitted to wager on a competitors in which they are included.

Mr Johnson says gamers need to be seen not to be cashing in on any inside understanding, which he states might cause "brand damage" to football and its competitions.

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

"We have to get over to gamers the reputational risk to the game," he states. "Once self-confidence has been harmed it is difficult to get it back - mud sticks."

'Overwhelmingly legal'

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

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

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

"The frustrating majority of sports betting taking location through UK operators is legal and fair," he says.

"But for some there is the temptation to ... corruptly interfere with the outcome of a sporting occasion.

"Such unfaithful has the prospective to undermine the stability of a sport, and it also damages the business interests of sports betting bodies and sports betting wagering."

The commission has actually developed an in-house Sports Betting Intelligence Unit to receive and distribute info to sporting authorities, wagering companies and policing authorities.

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

"We will inform sports betting of our concerns, to help avoid or cut [prohibited] activity"

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

'Vulnerabilities'

But in a two-and-a-half year period there has 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 examinations, and that much useful details has also been passed to sports betting authorities.

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

Meanwhile, he says much of those seeking to cheat the sports betting wagering market were educated about sports betting and sporting individuals, and about wagering operations and the motion of money.

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

Related internet links

World sports betting Law Report

ICC

Professional Players Federation

Professional Footballers' Association
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The FA

Betfair

Sport & Markt
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BLP

Gambling Commission
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