Sport wagering industry wants to protect itself

16 September 2010

By Bill Wilson

Business press reporter, BBC News

sports betting on sport is huge service.

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

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

Meanwhile, German research study firm Sport & Markt approximates the overall worldwide betting market will be worth 263bn euros (₤ 220bn) by 2012, with much of that driven by web and sports betting gambling.

But when the stability of occasions are struck the gaming industry suffers, and profits are put under hazard if clients can not wager with self-confidence.

And there can have been few higher-profile sport wagering stories than those impacting cricket and snooker this year.
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High-profile

As Sport & Markt's Gareth Moore observes: "Everyone talks about the sports betting gambling 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 actually been questioned by police over spot-fixing accusations connecting to a test against England at Lord's last month.

Three of these gamers 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 accusations, but was banned last week for 6 months for failing to report the prohibited approach to him to throw frames.
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There are likewise 2 other continuing investigations - not related 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 sincere, straight and reasonable that benefits sports betting firms due to the fact that individuals will spend money sports betting with self-confidence," he says.

"If you take the Pakistan claims, although unassociated to the UK regulated wagering market ... 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 need to take care 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 gambling, the focus has to be on sportspersons and sportswomen.

As Simon Taylor of the Professional Players' Federation mentions: "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 gamer organisations, such as the Professional Footballers' Association.

He believes that it is not adequate to merely have deterrents, sanctions and disciplinary treatments, however that the way to take on potential issues around gamers is likewise through education.

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

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

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

'Brand damage'
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Matt Johnson, head of regulative legal recommendations at the Football Association, concurs.

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

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

"If it loses that then individuals don't desire to bet, that is not in gambling companies' interests, and it is not in our interests."

He said that once a great track record was lost, the damage to a sport was "enormous".
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FA guidelines indicate players are not enabled to bank on a competitors in which they are included.

Mr Johnson says players need to be seen not to be capitalizing any inside knowledge, which he says might trigger "brand damage" to football and its competitions.

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 threat to the game," he states. "Once confidence has been damaged it is hard to get it back - mud sticks."

'Overwhelmingly legal'
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If this represents the "carrot" technique, then maybe Nick Tofiluk, director of regulation at the Gambling Commission, represents the "stick".

The Gambling Commission was established under the Gambling Act 2005 to regulate industrial gambling 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 frustrating majority of sports betting happening through UK operators is legal and reasonable," he states.

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

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

The commission has actually established an in-house Sports Betting Intelligence Unit to get and share details to sporting authorities, wagering firms and policing authorities.

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

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

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

'Vulnerabilities'

But in a two-and-a-half year period there has actually been simply one criminal prosecution, a 24-year-old male who was warned for cheating in relation to greyhound racing.

However, Mr Tofiluk says there are still eight continuous examinations, which much useful information has also been passed to sports betting authorities.

He said that where an examination by a sport governing body was quicker, and more cost reliable, then the commission would consider terminating a criminal examination "in favour of letting sports betting governing bodies take the lead".
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Meanwhile, he says a lot of those wanting to cheat the sports betting wagering industry were well-informed about sports betting and sporting individuals, and about wagering operations and the motion 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

Gambling Commission