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Sport wagering industry wants to secure itself

16 September 2010
bit.ly
By Bill Wilson

Business press reporter, BBC News

sports betting on sport is huge company.

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

And that figure is most likely to have grown further, with an approximated ₤ 1bn bet on the World Cup alone in the UK this summer season.

Meanwhile, German research study firm Sport & Markt approximates the overall global gaming 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 events are struck the gambling industry suffers, and profits are put under risk if clients 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 speak about the sports betting 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 actually been questioned by cops over spot-fixing accusations connecting to a test versus England at Lord’s last month.

Three of these players have actually 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 last week for six months for failing to report the illegal method to him to toss frames.

There are also 2 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 perceived as honest, straight and reasonable that is good for sports betting firms due to the fact that individuals will spend money wagering with confidence,” he says.

“If you take the Pakistan accusations, although unrelated to the UK regulated wagering industry … it is not really a favorable story for wagering in the UK.

“That is since the perception is that ‘cricket is now something we might have to beware about’.”

‘Education’

So what can be done to prevent future scandals?

According to specialists 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 mentions: “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 gamer organisations, such as the Professional Footballers’ Association.

He thinks that it is inadequate to simply have deterrents, sanctions and disciplinary procedures, but that the method to deal with possible issues around gamers is also through education.

Mr Taylor says guidelines need to be discussed plainly to gamers with clear examples, and by individuals they appreciate.

“Through educating gamers about sports betting you enhance integrity which remains in everyone’s interest,” he includes.

“If gamers are more difficult 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 better than treatment, and we also make a point of informing players ‘you are going to be captured’.”

“It is necessary 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 companies’ interests, and it is not in our interests.”

He said that as soon as an excellent credibility was lost, the damage to a sport was “enormous”.

FA guidelines suggest players are not to bet on a competitors in which they are involved.

Mr Johnson states gamers have actually to be seen not to be capitalizing any inside knowledge, which he states could cause “brand name damage” to football and its competitors.

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

“We need to overcome to players the reputational danger to the video game,” he says. “Once self-confidence has actually been damaged it is difficult to get it back - mud sticks.”

‘Overwhelmingly legal’

If this represents the “carrot” method, 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 control industrial sports betting in Great Britain.

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

“The overwhelming majority of sports betting wagering occurring through UK operators is legal and fair,” he states.

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

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

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

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

“We will inform sports betting of our issues, to help prevent or cut [illegal] activity”

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

‘Vulnerabilities’
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But in a two-and-a-half year period there has been just one criminal prosecution, a 24-year-old man who was cautioned for cheating in relation to greyhound racing.

However, Mr Tofiluk says there are still eight continuous investigations, and that much helpful information has actually likewise been passed to sports betting authorities.

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

Meanwhile, he says many of those seeking 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 money.

“They seek out the vulnerabilities of these to assist in their enterprises.”

Related web links

World sports betting Law Report
bit.ly
ICC

Professional Players Federation

Professional Footballers’ Association

The FA

Betfair

Sport & Markt
bit.ly
BLP

Gambling Commission
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