Sport wagering industry aims to secure itself

16 September 2010

By Bill Wilson
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Business press reporter, BBC News

sports betting on sport is substantial business.

Sport England approximates the value of spending 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 actually grown even more, with an estimated ₤ 1bn bet on the World Cup alone in the UK this summertime.

Meanwhile, German research study firm Sport & Markt approximates the general international gambling market will deserve 263bn euros (₤ 220bn) by 2012, with much of that driven by internet and sports betting gambling.

But when the integrity of events are struck the gambling industry suffers, and earnings are put under risk if customers can not bet with confidence.

And there can have been few 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 gambling market now.

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

Four Pakistan cricketers have actually been questioned by cops over spot-fixing claims associating with a test versus England at Lord’s last month.

Three of these gamers have said 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 champion John Higgins was cleared of match-fixing allegations, but was banned recently for 6 months for failing to report the unlawful technique to him to throw frames.

There are also two other continuing examinations - unrelated to Mr Higgins - into snooker.
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‘Honest’

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

“If the sport is viewed as sincere, straight and reasonable that benefits wagering companies since individuals will spend cash wagering with self-confidence,” he states.

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

“That is because the understanding is that ‘cricket is now something we may have to be cautious about’.”

‘Education’

So what can be done to avoid future scandals?

According to experts 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 people who can fix a match are the rivals or the referee.”

His organisation represents guys and women 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 insufficient to simply have deterrents, sanctions and disciplinary procedures, but that the method to deal with possible concerns around gamers is also through education.

Mr Taylor states guidelines need to be described plainly to players with clear examples, and by individuals they appreciate.
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“Through informing gamers about sports betting you reinforce integrity and that is in everyone’s interest,” he includes.

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

‘Brand damage’

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

“Prevention is better than remedy, and we likewise make a point of informing players ‘you are going to be caught’.”

“It is important that sport is directly, and is seen to be directly,” he includes.

“If it loses that then individuals do not desire to bet, that is not in sports betting firms’ interests, and it is not in our interests.”

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

FA guidelines imply players are not enabled to bank on a competition in which they are involved.
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Mr Johnson states gamers have actually to be seen not to be cashing in on any inside knowledge, which he states might trigger “brand name 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 last the following spring.

“We need to get over to players the reputational risk to the video game,” he states. “Once self-confidence has been harmed it is tough to get it back - mud sticks.”

‘Overwhelmingly legal’

If this the “carrot” approach, 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 manage commercial sports betting in Great Britain.

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

“The frustrating majority of sports betting occurring through UK operators is legal and reasonable,” he states.

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

“Such cheating has the possible to weaken the integrity of a sport, and it likewise harms the industrial interests of sports betting bodies and sports betting.”

The commission has established an in-house Sports Betting Intelligence Unit to get and share details to sporting authorities, sports betting firms and policing authorities.
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“Since 2007 we have experienced a significant insight into world of corrupt sports betting wagering,” he says.

“We will notify sports betting of our concerns, to assist avoid or reduce [illegal] activity”

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

‘Vulnerabilities’

But in a two-and-a-half year duration there has actually been simply one prosecution, a 24-year-old man who was cautioned for cheating in relation to greyhound racing.

However, Mr Tofiluk says there are still 8 continuous examinations, which much beneficial information has actually also been passed to sports betting authorities.

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

Meanwhile, he says a number of those looking to cheat the sports betting wagering market were knowledgeable about sports betting and sporting people, and about sports betting operations and the motion of money.

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

Related internet links

World sports betting Law Report

ICC

Professional Players Federation

Professional Footballers’ Association
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The FA

Betfair

Sport & Markt

BLP

Gambling Commission