Sport wagering industry aims to safeguard itself

16 September 2010
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By Bill Wilson

Business press reporter, BBC News

sports betting on sport is big company.

Sport England estimates the value of spending on sport-related gambling in England grew from ₤ 1.7 bn in 1985 to ₤ 2.8 bn in 2008.

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

Meanwhile, German research company Sport & Markt approximates the general worldwide sports betting 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 occasions are hit the gaming industry suffers, and profits are put under threat if consumers can not bet with confidence.

And there can have been couple of higher-profile sport wagering 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 substantial market in world company, it is one that is now on the front pages of papers."

Four Pakistan cricketers have actually been questioned by police over spot-fixing claims connecting to a test versus England at Lord's last month.

Three of these gamers have stated they will also challenge the corruption charges mounted against 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 unlawful approach to him to throw frames.

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

'Honest'

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

"If the sport is viewed as sincere, straight and fair that is good for wagering companies since people will spend cash wagering with confidence," he says.

"If you take the Pakistan claims, although unassociated to the UK controlled wagering market ... it is not truly a favorable story for sports betting in the UK.

"That is due to the fact that the perception is that 'cricket is now something we might have to beware 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 has to be on sportspersons and sportswomen.

As Simon Taylor of the Professional Players' Federation points out: "The only individuals who can repair a match are the rivals 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.
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He believes that it is insufficient to merely have deterrents, sanctions and disciplinary treatments, but that the way to deal with prospective concerns around players is also through education.

Mr Taylor states guidelines require to be described clearly to gamers with clear examples, and by people they appreciate.

"Through educating players about sports betting wagering you strengthen stability which is in everybody's interest," he includes.

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

Matt Johnson, head of regulative legal recommendations at the Football Association, agrees.

"Prevention is better than treatment, and we likewise make a point of telling 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 don't desire to wager, that is not in sports betting firms' interests, and it is not in our interests."

He stated that once an excellent reputation was lost, the damage to a sport was "incalculable".

FA guidelines mean gamers are not allowed to bank on a competition in which they are involved.

Mr Johnson says gamers need to be seen not to be capitalizing any inside understanding, which he states might cause "brand damage" to football and its competitions.

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

"We need to overcome to gamers the reputational threat to the game," he says. "Once confidence has actually been harmed it is tough to get it back - mud sticks."
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'Overwhelmingly legal'

If this represents the "carrot" method, then maybe Nick Tofiluk, director of guideline at the Gambling Commission, represents the "stick".

The Gambling Commission was established under the Gambling Act 2005 to control business gambling in Great Britain.

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

"The frustrating majority of sports betting taking place 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 integrity of a sport, and it also damages the commercial interests of sports betting bodies and sports betting wagering."

The commission has actually established an in-house Sports Betting Intelligence Unit to get and disseminate info to sporting authorities, sports betting firms and policing authorities.

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

"We will signal sports betting of our concerns, to assist prevent or curtail [unlawful] 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 just one prosecution, a 24-year-old man who was warned for cheating in relation to greyhound racing.

However, Mr Tofiluk states there are still 8 continuous examinations, which much useful information has likewise been passed to sports betting authorities.

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

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

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

Related internet 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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