Sport sports betting industry seeks to protect itself

16 September 2010

By Bill Wilson

Business press reporter, BBC News

sports betting on sport is big organization.

Sport England approximates the worth of spending on sport-related betting 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 summer.

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

But when the integrity of occasions are struck the gambling market suffers, and revenues are put under danger if clients can not bet with confidence.

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

High-profile
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As Sport & Markt’s Gareth Moore observes: “Everyone discuss the sports betting gambling market now.
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“Not just is it a considerable market in world organization, it is one that is now on the front pages of newspapers.”

Four Pakistan cricketers have actually been questioned by authorities over spot-fixing accusations relating to a test against England at Lord’s last month.

Three of these players have actually stated they will likewise challenge the corruption charges installed 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 prohibited recently for 6 months for failing to report the prohibited technique to him to toss frames.

There are also 2 other continuing examinations - not associated 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 viewed as truthful, straight and reasonable that is excellent for sports betting companies because people will sports betting with confidence,” he says.

“If you take the Pakistan allegations, although unassociated to the UK controlled wagering market … it is not truly a positive story for sports betting in the UK.

“That is because 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 experts at a World sports betting Law Report conference into sports betting gambling, the focus needs to be on sportspersons and sportswomen.
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As Simon Taylor of the Professional Players’ Federation explains: “The only people who can repair 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 thinks that it is inadequate to simply have deterrents, sanctions and disciplinary procedures, however that the method to take on prospective issues around players is likewise through education.

Mr Taylor says guidelines require to be explained clearly to players with clear examples, and by people they appreciate.

“Through informing gamers about sports betting you strengthen integrity which remains 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 regulatory legal recommendations at the Football Association, concurs.

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

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

“If it loses that then people don’t wish to bet, that is not in sports betting companies’ interests, and it is not in our interests.”

He said that when a good reputation was lost, the damage to a sport was “incalculable”.
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FA rules suggest gamers are not permitted to wager on a competitors in which they are included.

Mr Johnson says gamers have actually to be seen not to be capitalizing any inside understanding, which he states might cause “brand damage” to football and its competitions.
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So, even a Second Division gamer knocked out of the FA Cup in the fall can not bet on a Manchester United v Chelsea cup last the following spring.

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

‘Overwhelmingly legal’

If this represents the “carrot” method, 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 manage industrial gambling in Great Britain.

An ex-chief constable of West Midlands authorities, Mr Tofiluk has duty 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 occurring through UK operators is legal and fair,” he states.

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

“Such cheating has the possible to undermine the integrity of a sport, and it likewise hurts the commercial interests of sports betting bodies and sports betting.”
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The commission has actually developed an in-house Sports Betting Intelligence Unit to get and distribute details to sporting authorities, wagering firms and policing authorities.

“Since 2007 we have experienced a significant insight into world of corrupt sports betting,” he says.

“We will signal sports betting of our concerns, to assist prevent or cut [illegal] activity”

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

‘Vulnerabilities’

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

However, Mr Tofiluk states there are still eight ongoing investigations, and that much beneficial details has likewise been passed to sports betting authorities.

He stated that where an investigation by a sport governing body was quicker, and more cost efficient, then the commission would consider stopping a criminal investigation “in favour of letting sports betting governing bodies take the lead”.
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Meanwhile, he states much of those looking to cheat the sports betting wagering market were experienced about sports betting and sporting people, and about sports betting operations and the movement of cash.

“They look for the vulnerabilities of these to assist in their business.”

Related internet links

World sports betting Law Report

ICC

Professional Players Federation

Professional Footballers’ Association

The FA

Betfair

Sport & Markt

BLP

Gambling Commission