Sport wagering industry wants to safeguard itself

16 September 2010
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By Bill Wilson

Business press reporter, BBC News

sports betting on sport is huge service.
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Sport England approximates the value of spending on sport-related gaming in England grew from ₤ 1.7 bn in 1985 to ₤ 2.8 bn in 2008.

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

Meanwhile, German research study firm Sport & Markt approximates the overall international sports betting market will deserve 263bn euros (₤ 220bn) by 2012, with much of that driven by internet and sports betting.
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But when the integrity of occasions are hit the sports betting industry suffers, and revenues are put under hazard if consumers can not bet with confidence.

And there can have been couple of higher-profile sport betting 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 only is it a significant 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 players have stated 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 champion John Higgins was cleared of match-fixing claims, but was prohibited last week for six months for stopping working to report the unlawful technique to him to toss frames.
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There are likewise 2 other continuing examinations - unrelated to Mr Higgins - into snooker.

'Honest'

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

"If the sport is perceived as sincere, straight and fair that is excellent for wagering firms due to the fact that individuals will invest cash wagering with confidence," he states.

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

"That is since the understanding is that 'cricket is now something we might need to be mindful 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, the focus needs to be on sportspersons 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 women in 15 sports betting in the UK, being an umbrella organisation for all player organisations, such as the Professional Footballers' Association.

He thinks that it is inadequate to merely have deterrents, sanctions and disciplinary treatments, but that the method to take on prospective concerns around gamers is likewise through education.

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

"Through educating players about sports betting wagering you reinforce integrity and that remains in everybody's interest," he adds.

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

'Brand damage'

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

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

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

"If it loses that then people do not wish to bet, that is not in gambling firms' interests, and it is not in our interests."

He said that as soon as a good reputation was lost, the damage to a sport was "incalculable".

FA rules indicate gamers are not permitted to wager on a competitors in which they are included.

Mr Johnson states players have actually to be seen not to be cashing in on any inside knowledge, which he states could cause "brand name damage" to football and its competitions.

So, even a 2nd Division gamer knocked out of the FA Cup in the fall can not wager on a Manchester United v Chelsea cup final the following spring.

"We have to overcome to players the reputational risk to the video game," he says. "Once self-confidence has actually been harmed it is tough to get it back - mud sticks."

'Overwhelmingly legal'

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

The Gambling Commission was set up under the Gambling Act 2005 to manage industrial sports betting in Great Britain.

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

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

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

"Such unfaithful has the prospective to undermine the integrity of a sport, and it also hurts the commercial interests of sports betting bodies and sports betting."

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

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

"We will signal sports betting of our issues, to help or cut [illegal] 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 duration there has actually 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 8 continuous examinations, which much beneficial details 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 effective, then the commission would think about stopping a criminal investigation "in favour of letting sports betting governing bodies take the lead".

Meanwhile, he says a lot of those looking to cheat the sports betting wagering industry were well-informed about sports betting and sporting individuals, and about sports betting operations and the movement of cash.

"They look for 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

Betfair
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Sport & Markt
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BLP

Gambling Commission

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