Sport Betting Industry Seeks To Protect Itself
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Sport sports betting industry seeks to safeguard itself
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16 September 2010
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By Bill Wilson

Business press reporter, BBC News

sports betting on sport is big business.

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

Meanwhile, German research study firm Sport & the general international gaming market will be worth 263bn euros (₤ 220bn) by 2012, with much of that driven by internet and sports betting gaming.
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But when the stability of events are struck the gaming industry suffers, and incomes are put under hazard if clients can not bet with self-confidence.

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

High-profile

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

"Not just is it a significant market in world company, it is one that is now on the front pages of papers."

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 said they will also challenge the corruption charges mounted 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 allegations, however was banned recently for 6 months for failing to report the prohibited technique to him to throw frames.

There are also 2 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 excellent for wagering companies due to the fact that people will invest money wagering with confidence," he states.

"If you take the Pakistan accusations, although unrelated to the UK regulated wagering market ... it is not actually a positive story for wagering in the UK.

"That is because the understanding is that 'cricket is now something we might have to be cautious about'."

'Education'

So what can be done to prevent future scandals?

According to experts 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 player organisations, such as the Professional Footballers' Association.

He thinks that it is insufficient to merely have deterrents, sanctions and disciplinary treatments, however that the method to deal with prospective concerns around players is also through education.

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

"Through informing players about sports betting wagering you reinforce integrity which remains in everyone's interest," he adds.

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

'Brand damage'

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

"Prevention is better than treatment, and we likewise make a point of telling gamers 'you are going to be caught'."

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

"If it loses that then people don't want to bet, that is not in gaming firms' interests, and it is not in our interests."

He stated that when an excellent credibility was lost, the damage to a sport was "enormous".

FA rules suggest players are not allowed to bank on a competitors in which they are included.

Mr Johnson says players need to be seen not to be cashing in on any inside knowledge, which he says could trigger "brand name damage" to football and its competitions.

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

"We need to get over to players the reputational danger to the video game," he states. "Once confidence has actually been damaged it is hard to get it back - mud sticks."

'Overwhelmingly legal'

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

The Gambling Commission was established under the Gambling Act 2005 to manage business sports betting in Great Britain.

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

"The frustrating majority of sports betting wagering taking place through UK operators is legal and reasonable," he states.

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

"Such cheating has the possible to undermine the stability of a sport, and it likewise hurts the industrial interests of sports betting bodies and sports betting."

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

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

"We will alert sports betting of our issues, to help prevent or reduce [unlawful] activity"

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

'Vulnerabilities'

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

However, Mr Tofiluk states there are still 8 ongoing examinations, and that much beneficial info has also been passed to sports betting authorities.

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

Meanwhile, he states a number of those wanting to cheat the sports betting wagering market were well-informed about sports betting and sporting people, and about wagering operations and the movement of cash.

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

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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