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Sport Betting Industry Seeks To Protect Itself

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Sport betting market aims to secure itself

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16 September 2010

By Bill Wilson

Business press reporter, BBC News

sports betting on sport is substantial business.

Sport England approximates the worth 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 likely to have grown even more, with an estimated ₤ 1bn bet on the World Cup alone in the UK this summer season.

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

But when the integrity of occasions are struck the gambling market suffers, and earnings are put under risk if consumers 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 talks about the sports betting gambling market now.

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

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

Three of these players have 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, but was prohibited recently for six months for failing to report the prohibited approach to him to toss frames.

There are also two other continuing investigations – 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 sincere, straight and reasonable that benefits wagering companies due to the fact that people will invest money wagering with confidence,” he says.

“If you take the Pakistan allegations, although unassociated to the UK managed wagering industry … it is not actually a positive story for wagering in the UK.

“That is due to the fact that the understanding is that ‘cricket is now something we might need to beware about’.”

‘Education’

So what can be done to avoid future scandals?

According to 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 points out: “The only individuals who can fix 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.

He thinks that it is not adequate to merely have deterrents, sanctions and disciplinary procedures, but that the way to tackle potential problems around players is also through education.

Mr Taylor states guidelines require to be described plainly to players with clear examples, and by individuals they respect.

“Through informing players about sports betting you strengthen integrity which is in everybody’s interest,” he adds.

“If gamers 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 much better than cure, and we also make a point of telling gamers ‘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 do not desire to wager, that is not in sports 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 rules suggest gamers are not allowed to bank on a competition in which they are included.

Mr Johnson says players need to be seen not to be capitalizing any inside understanding, which he states might trigger “brand 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 final the following spring.

“We need to overcome to players the reputational danger to the 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” method, then perhaps Nick Tofiluk, director of policy at the Gambling Commission, represents the “stick”.

The Gambling Commission was established under the Gambling Act 2005 to control business gambling in Great Britain.

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

“The overwhelming majority of sports betting wagering taking place through UK operators is legal and reasonable,” he says.

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

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“Such unfaithful has the potential to undermine the integrity of a sport, and it likewise hurts the industrial interests of sports betting bodies and sports betting wagering.”

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

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

“We will signal sports betting of our concerns, to help avoid or reduce [unlawful] activity”

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

‘Vulnerabilities’

But in a two-and-a-half year period there has actually 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 betting authorities.

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

Meanwhile, he states a lot of those looking to cheat the sports betting wagering industry were educated about sports betting and sporting people, and about sports betting operations and the motion of money.

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

Related web links

World sports betting Law Report

ICC

Professional Players Federation

Professional Footballers’ Association

The FA

Betfair

Sport & Markt

BLP

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Gambling Commission

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