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Sport sports betting industry seeks to protect itself

16 September 2010
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By Bill Wilson

Business reporter, BBC News

sports betting on sport is huge 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.

And that figure is likely to have grown even more, with an approximated ₤ 1bn bet on the World Cup alone in the UK this summer.

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

But when the integrity of occasions are struck the gaming market suffers, and profits are put under risk if customers can not wager with self-confidence.

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

High-profile

As Sport & Markt’s Gareth Moore observes: “Everyone talks about the sports betting gambling market now.

“Not just is it a significant market in world company, it is one that is now on the front pages of papers.”

Four Pakistan cricketers have been questioned by cops over spot-fixing allegations relating to a test against 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 champion John Higgins was cleared of match-fixing allegations, however was prohibited last week for six months for failing to report the prohibited method to him to throw frames.

There are likewise two other continuing investigations - unrelated 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 viewed as honest, straight and fair that is excellent for wagering firms because people will spend money wagering with confidence,” he states.

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

“That is since the understanding 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 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 people who can fix a match are the rivals or the referee.”

His organisation represents men and ladies in 15 sports betting in the UK, being an umbrella organisation for all player 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 deal with potential issues around gamers is likewise through education.

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

“Through educating players about sports betting wagering you reinforce integrity which remains in everyone’s interest,” he includes.

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

‘Brand damage’

Matt Johnson, head of regulative 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 captured’.”

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

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

He stated that as soon as a good reputation was lost, the damage to a sport was “incalculable”.

FA rules suggest gamers are not permitted to bank on a competitors in which they are involved.

Mr Johnson says players need to be seen not to be cashing in on any inside understanding, which he states could trigger “brand damage” to football and its competitors.

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

“We have to get over to gamers the reputational threat to the game,” he says. “Once self-confidence has been damaged it is hard to get it back - mud sticks.”

‘Overwhelmingly legal’

If this represents the “carrot” approach, then possibly Nick Tofiluk, director of guideline at the Gambling Commission, represents the “stick”.

The Gambling Commission was set up under the Gambling Act 2005 to manage commercial gambling in Great Britain.

An ex-chief constable of West Midlands cops, 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 wagering taking location through UK operators is legal and reasonable,” he says.

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

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

The commission has developed an in-house Sports Betting Intelligence Unit to receive and disseminate information to sporting authorities, sports betting companies and policing authorities.

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

“We will signal sports betting of our issues, to help prevent or reduce [illegal] activity”

In May 2010, the commission likewise presented a private telephone hotline for those with info or suspicions.

‘Vulnerabilities’

But in a two-and-a-half year period there has actually been just one criminal prosecution, a 24-year-old male who was warned for cheating in relation to greyhound racing.

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

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

Meanwhile, he says a lot of those seeking to cheat the sports betting wagering market were knowledgeable about sports betting and sporting individuals, and about wagering operations and the motion of cash.

“They look for out 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
bit.ly
BLP

Gambling Commission