Sport Betting Industry Aims To Protect Itself
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Sport wagering industry looks to protect itself
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16 September 2010

By Bill Wilson

Business press reporter, BBC News

sports betting on sport is huge service.

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

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

But when the integrity of events are struck the betting market suffers, and profits are put under danger if consumers can not wager with confidence.

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

High-profile

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

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

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

Three of these gamers have stated they will also challenge the corruption charges installed versus 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 banned recently for 6 months for failing to report the prohibited approach 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, one of the UK's greatest online sporting exchanges.

"If the sport is viewed as honest, straight and fair that is great for sports betting companies because individuals will invest cash wagering with self-confidence," he says.

"If you take the Pakistan accusations, although unassociated to the UK managed sports betting market ... it is not truly a positive story for sports betting in the UK.

"That is because the understanding is that 'cricket is now something we may 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 gambling, the focus has to be on sportspersons and sportswomen.

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

His organisation represents males and females in 15 sports betting in the UK, being an umbrella organisation for all player organisations, such as the Professional Footballers' Association.
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He thinks that it is insufficient to merely have deterrents, sanctions and disciplinary procedures, however that the method to deal with possible concerns around gamers is likewise through education.

Mr Taylor says rules need to be discussed clearly to gamers with clear examples, and by people they appreciate.

"Through educating players about sports betting you reinforce stability and that is in everyone's interest," he includes.

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

'Brand damage'

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

"Prevention is much better than remedy, and we likewise make a point of informing gamers 'you are going to be captured'."
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"It is vital that sport is straight, and is seen to be directly," he includes.

"If it loses that then people don't desire to wager, that is not in gambling firms' interests, and it is not in our interests."

He stated that as soon as a great credibility was lost, the damage to a sport was "enormous".
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FA rules indicate players are not enabled to bet on a competitors in which they are involved.

Mr Johnson states players need to be seen not to be cashing in on any inside understanding, which he states could cause "brand name damage" to football and its competitors.

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

"We have to overcome to gamers the reputational risk to the game," he states. "Once self-confidence has been damaged it is hard 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 set up under the Gambling Act 2005 to control industrial sports betting in Great Britain.

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

"The overwhelming bulk of sports betting wagering happening through UK operators is legal and reasonable," he says.

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

"Such unfaithful has the potential to weaken the integrity of a sport, and it likewise hurts the industrial interests of sports betting bodies and sports betting."

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

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

"We will alert sports betting of our concerns, to assist prevent or reduce [illegal] activity"

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

'Vulnerabilities'

But in a two-and-a-half year period there has been just one prosecution, a 24-year-old guy who was cautioned for unfaithful in relation to greyhound racing.

However, Mr Tofiluk says there are still 8 continuous investigations, and that much useful details has actually also been passed to sports betting 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 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 market were knowledgeable about sports betting and sporting individuals, and about wagering operations and the movement of cash.

"They seek out the vulnerabilities of these to help in their business."

Related web links

World sports betting Law Report

ICC

Professional Players Federation

Professional Footballers' Association

The FA
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Betfair

Sport & Markt
bit.ly
BLP

Gambling Commission