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Sport wagering market looks to safeguard itself

16 September 2010
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By Bill Wilson

Business reporter, BBC News

sports betting on sport is substantial business.

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

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

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

But when the integrity of events are hit the sports betting market suffers, and revenues are put under hazard if customers can not bet with confidence.

And there can have been few 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 gambling market now.

"Not only is it a significant market in world service, it is one that is now on the front pages of papers."

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 said they will likewise challenge the corruption charges mounted against the trio by the sport governing body the International Cricket Council.

Meanwhile, three-times snooker world champion John Higgins was cleared of match-fixing claims, however was prohibited last week for 6 months for stopping working to report the prohibited technique to him to throw 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 most significant online sporting exchanges.

"If the sport is viewed as honest, straight and fair that is great for wagering companies due to the fact that individuals will spend cash sports betting with self-confidence," he states.

"If you take the Pakistan accusations, although unrelated to the UK managed wagering industry ... it is not truly a favorable story for sports betting in the UK.

"That is since the understanding is that 'cricket is now something we may need to be mindful about'."

'Education'

So what can be done to avoid future scandals?

According to professionals at a World sports betting Law Report conference into sports betting gambling, the focus has to be on sportsmen 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 thinks that it is not enough to simply have deterrents, sanctions and disciplinary procedures, but that the method to deal with prospective concerns around players is likewise through education.

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

"Through informing gamers about sports betting wagering you strengthen integrity and that is in everybody's interest," he adds.

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

'Brand damage'

Matt Johnson, head of regulatory legal recommendations at the Football Association, concurs.

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

"It is necessary that sport is straight, 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 firms' interests, and it is not in our interests."

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

FA rules mean players are not allowed to wager on a competitors in which they are involved.

Mr Johnson says gamers need to be seen not to be capitalizing any inside understanding, which he says might cause "brand damage" to football and its competitions.
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So, even a 2nd Division gamer knocked out of the FA Cup in the fall can not bank on a Manchester United v Chelsea cup final the following spring.

"We have to overcome to players the reputational danger to the game," he states. "Once confidence has been harmed it is difficult to get it back - mud sticks."

'Overwhelmingly legal'

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

The Gambling Commission was established under the Gambling Act 2005 to regulate commercial gaming in Great Britain.

An ex-chief constable of West Midlands police, Mr Tofiluk has obligation 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 wagering taking location through UK operators is legal and reasonable," he says.

"But for some there is the temptation to ... corruptly interfere with the result of a sporting occasion.

"Such unfaithful has the prospective to undermine the of a sport, and it likewise damages the industrial interests of sports betting bodies and sports betting."

The commission has actually established an internal Sports Betting Intelligence Unit to get and share details to sporting authorities, sports betting companies and policing authorities.

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

"We will notify sports betting of our issues, to help prevent or reduce [unlawful] activity"

In May 2010, the commission also introduced a confidential 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 male who was warned for unfaithful in relation to greyhound racing.

However, Mr Tofiluk says there are still 8 continuous examinations, and that much helpful details has actually likewise been passed to sports betting authorities.

He stated that where an examination by a sport governing body was quicker, and more expense reliable, then the commission would think about stopping a criminal investigation "in favour of letting sports betting governing bodies take the lead".

Meanwhile, he says a number of those seeking to cheat the sports betting wagering market were experienced about sports betting and sporting people, and about betting operations and the movement of money.

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

Related web 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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