Sport wagering industry wants to protect itself
16 September 2010
By Bill Wilson
Business press reporter, BBC News
sports betting on sport is big business.
Sport England estimates the worth of costs on sport-related sports betting in England grew from ₤ 1.7 bn in 1985 to ₤ 2.8 bn in 2008.
And that figure is most likely to have actually grown further, with an approximated ₤ 1bn bet on the World Cup alone in the UK this summer.
Meanwhile, German research firm Sport & Markt approximates the total international gambling market will deserve 263bn euros (₤ 220bn) by 2012, with much of that driven by internet and sports betting gambling.
But when the stability of events are hit the gaming market suffers, and incomes are put under hazard if clients can not wager with confidence.
And there can have been few higher-profile sport wagering 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 significant market in world organization, 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 against England at Lord's last month.
Three of these gamers have actually 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 claims, however was prohibited last week for six months for stopping working to report the illegal technique to him to toss frames.
There are also 2 other continuing investigations - not related to Mr Higgins - into snooker.
'Honest'
David O'Reilly is legal counsel for Betfair, one of the UK's greatest online sporting exchanges.
"If the sport is perceived as truthful, straight and fair that is good for wagering companies because individuals will spend money sports betting with self-confidence," he says.
"If you take the Pakistan allegations, although unrelated to the UK regulated sports betting market ... it is not really a favorable story for wagering in the UK.
"That is because 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 needs 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 women 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 adequate to merely have deterrents, sanctions and disciplinary procedures, but that the method to tackle prospective issues around gamers is likewise through education.
Mr Taylor states rules require to be described plainly to players with clear examples, and by individuals they respect.
"Through educating players about sports betting wagering you strengthen integrity and that remains 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, concurs.
"Prevention is better than cure, and we likewise make a point of informing players 'you are going to be caught'."
"It is important that sport is straight, and is seen to be straight," he includes.
"If it loses that then people do not desire to wager, that is not in sports betting companies' interests, and it is not in our interests."
He stated that as soon as an excellent reputation was lost, the damage to a sport was "enormous".
FA rules mean gamers are not permitted to bank on a competitors in which they are involved.
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Mr Johnson says players have actually to be seen not to be capitalizing any inside understanding, which he says could cause "brand damage" to football and its competitions.
So, even a Second Division player out of the FA Cup in the autumn can not bank on a Manchester United v Chelsea cup last the following spring.
"We have to overcome to gamers the reputational risk to the video game," he states. "Once confidence has been harmed it is hard to get it back - mud sticks."
'Overwhelmingly legal'
If this represents the "carrot" approach, then possibly Nick Tofiluk, director of regulation at the Gambling Commission, represents the "stick".
The Gambling Commission was set up under the Gambling Act 2005 to regulate industrial gaming in Great Britain.
An ex-chief constable of West Midlands police, Mr Tofiluk has responsibility for policing all wagering in the UK apart from spread wagering, which is the remit of the FSA.
"The overwhelming bulk of sports betting wagering happening through UK operators is legal and reasonable," he says.
"But for some there is the temptation to ... corruptly disrupt the outcome of a sporting event.
"Such cheating has the prospective to undermine the stability of a sport, and it also hurts the industrial interests of sports betting bodies and sports betting wagering."
The commission has actually developed an in-house Sports Betting Intelligence Unit to get and distribute info to sporting authorities, sports betting companies and policing authorities.
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"Since 2007 we have experienced a substantial insight into world of corrupt sports betting," he states.
"We will inform sports betting of our issues, to help avoid or curtail [prohibited] 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 period there has actually been just one prosecution, a 24-year-old man who was cautioned for cheating in relation to greyhound racing.
However, Mr Tofiluk states there are still 8 ongoing investigations, which much beneficial details has actually also been passed to sports betting authorities.
He stated that where an investigation by a sport governing body was quicker, and more cost reliable, then the commission would consider stopping a criminal investigation "in favour of letting sports betting governing bodies take the lead".
Meanwhile, he says numerous of those seeking to cheat the sports betting market were educated about sports betting and sporting individuals, and about wagering operations and the movement of money.
"They look for the vulnerabilities of these to help in their business."
Related web links
World sports betting Law Report
ICC
Professional Players Federation
Professional Footballers' Association
The FA
Betfair
Sport & Markt
bet9ja.com
BLP
Gambling Commission
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Sport Betting Industry Aims To Protect Itself
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