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Sport sports betting market aims to safeguard itself

16 September 2010

By Bill Wilson

Business press reporter, BBC News

sports betting on sport is substantial business.

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.

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

Meanwhile, German research study company Sport & Markt estimates the total worldwide gaming 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 gambling industry suffers, and earnings are put under threat if clients can not bet with self-confidence.

And there can have been couple of 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 market now.

"Not only 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 police over spot-fixing claims relating to a test versus England at Lord's last month.

Three of these players have actually said they will likewise challenge the corruption charges installed 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 allegations, however was prohibited last week for six months for failing to report the illegal method to him to toss frames.

There are also 2 other continuing investigations - unrelated to Mr Higgins - into snooker.

'Honest'

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

"If the sport is viewed as truthful, straight and reasonable that is good for sports betting companies because people will invest cash sports betting with self-confidence," he says.

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

"That is due to the fact that the perception is that 'cricket is now something we may have to beware about'."

'Education'

So what can be done to prevent 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 explains: "The only individuals who can repair 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 believes that it is insufficient to merely have deterrents, sanctions and disciplinary treatments, but that the method to deal with prospective concerns around players is also through education.
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Mr Taylor states guidelines need to be described clearly to players with clear examples, and by individuals they appreciate.

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

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

'Brand damage'

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

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

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

"If it loses that then people do not desire to wager, that is not in sports betting firms' interests, and it is not in our interests."

He said that when a good track record was lost, the damage to a sport was "enormous".

FA guidelines imply players are not permitted to bet 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 might cause "brand name damage" to football and its competitions.

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

"We need to get over to gamers the reputational risk to the video 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" method, then perhaps Nick Tofiluk, director of regulation at the Gambling Commission, represents the "stick".

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

An ex-chief constable of West Midlands cops, 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 bulk of sports betting wagering taking location through UK operators is legal and reasonable," he states.

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

"Such unfaithful has the possible to undermine the integrity of a sport, and it also harms the industrial interests of sports betting bodies and sports betting."

The commission has actually developed an internal Sports Betting Intelligence Unit to receive and distribute information to sporting authorities, wagering firms and policing authorities.

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

"We will of our issues, to assist avoid or reduce [prohibited] activity"

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

'Vulnerabilities'

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

However, Mr Tofiluk states there are still eight ongoing examinations, and that much helpful info has actually likewise 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 stopping a criminal examination "in favour of letting sports betting governing bodies take the lead".

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

"They look for the vulnerabilities of these to help in their enterprises."

Related web links
bit.ly
World sports betting Law Report

ICC

Professional Players Federation
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Professional Footballers' Association

The FA

Betfair

Sport & Markt
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BLP

Gambling Commission
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