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Sport sports betting industry looks to secure 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 huge business.

Sport England estimates the worth 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 further, with an estimated ₤ 1bn bet on the World Cup alone in the UK this summertime.

Meanwhile, German research company Sport & Markt estimates the total worldwide sports betting market will deserve 263 (₤ 220bn) by 2012, with much of that driven by internet and sports betting.

But when the stability of events are hit the gaming market suffers, and incomes are put under threat if customers can not bet with confidence.

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

High-profile

As Sport & Markt’s Gareth Moore observes: “Everyone talks about the sports betting market now.

“Not only is it a significant market in world business, it is one that is now on the front pages of newspapers.”

Four Pakistan cricketers have actually been questioned by cops over spot-fixing allegations associating with a test against England at Lord’s last month.
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Three of these players have actually stated they will likewise 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 6 months for failing to report the prohibited method to him to toss frames.

There are likewise two other continuing investigations - unrelated to Mr Higgins - into snooker.

‘Honest’

David O’Reilly is legal counsel for Betfair, among the UK’s biggest online sporting exchanges.

“If the sport is perceived as truthful, straight and fair that benefits sports betting companies because individuals will invest money sports betting with self-confidence,” he says.

“If you take the Pakistan accusations, although unrelated to the UK managed sports betting market … it is not truly a favorable story for wagering in the UK.

“That is due to the fact that the understanding is that ‘cricket is now something we may have to take care about’.”

‘Education’

So what can be done to avoid future scandals?

According to specialists at a World sports betting Law Report conference into sports betting gambling, the focus has 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 rivals or the referee.”

His organisation represents guys 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 not enough to merely have deterrents, sanctions and disciplinary treatments, but that the method to tackle prospective issues around players is likewise through education.

Mr Taylor says rules require to be described clearly to players with clear examples, and by individuals they respect.

“Through informing gamers about sports betting you strengthen stability and that is in everybody’s interest,” he adds.

“If gamers are more difficult to corrupt then sport will be more difficult to corrupt.”

‘Brand damage’

Matt Johnson, head of regulative legal guidance at the Football Association, concurs.

“Prevention is better than treatment, and we likewise make a point of telling gamers ‘you are going to be captured’.”

“It is crucial that sport is directly, and is seen to be directly,” he adds.

“If it loses that then individuals don’t want to wager, that is not in sports betting firms’ interests, and it is not in our interests.”

He stated that once a good reputation was lost, the damage to a sport was “incalculable”.

FA guidelines imply gamers are not allowed to bet on a competition in which they are involved.

Mr Johnson says gamers have actually to be seen not to be cashing in on any inside knowledge, which he states might trigger “brand damage” to football and its competitors.

So, even a 2nd 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 have to get over to players the reputational danger to the video game,” he says. “Once confidence has actually been harmed it is hard to get it back - mud sticks.”

‘Overwhelmingly legal’

If this represents the “carrot” technique, then perhaps Nick Tofiluk, director of guideline at the Gambling Commission, represents the “stick”.

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

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

“The frustrating bulk of sports betting happening 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 cheating has the possible to weaken the stability of a sport, and it also harms the industrial interests of sports betting bodies and sports betting wagering.”

The commission has established an internal Sports Betting Intelligence Unit to get and share information to sporting authorities, wagering companies and policing authorities.
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“Since 2007 we have actually experienced a considerable insight into world of corrupt sports betting wagering,” he states.

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

In May 2010, the commission also introduced a private telephone hotline for those with info 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 male who was warned for unfaithful in relation to greyhound racing.

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

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

Meanwhile, he says much of those looking to cheat the sports betting wagering industry were knowledgeable 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

World sports betting Law Report

ICC

Professional Players Federation

Professional Footballers’ Association

The FA

Betfair

Sport & Markt
bit.ly
BLP

Gambling Commission