Sport Betting Industry Wants To Protect Itself

Sport betting market seeks to secure itself

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Betting on sport is substantial business.


Sport England estimates the worth of costs on sport-related gambling 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 even more, with an approximated ₤ 1bn bet on the World Cup alone in the UK this summer.


Meanwhile, German research firm Sport & Markt estimates the total worldwide gambling market will deserve 263bn euros (₤ 220bn) by 2012, with much of that driven by web and sports gambling.

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But when the integrity of events are hit the gambling industry suffers, and profits are put under danger if customers can not wager with confidence.


And there can have been few higher-profile sport betting 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 significant market in world service, it is one that is now on the front pages of papers."


Four Pakistan cricketers have been questioned by authorities over spot-fixing claims associating with a test versus England at Lord's last month.


Three of these gamers 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 champ John Higgins was cleared of match-fixing accusations, however was banned last week for six months for stopping working to report the unlawful method to him to toss frames.


There are also two other continuing investigations - not related 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 sincere, straight and reasonable that benefits wagering firms due to the fact that people will invest cash betting with self-confidence," he says.


"If you take the Pakistan claims, although unrelated to the UK controlled betting market ... it is not truly a positive story for betting in the UK.


"That is because the understanding is that 'cricket is now something we may have to be cautious about'."


'Education'


So what can be done to avoid future scandals?


According to specialists at a World Sports Law Report conference into sports betting, the focus needs to be on sportsmen and sportswomen.


As Simon Taylor of the Professional Players' Federation points out: "The only individuals who can fix a match are the rivals or the referee."


His organisation represents males and females in 15 sports in the UK, being an umbrella organisation for all player organisations, such as the Professional Footballers' Association.


He thinks that it is inadequate to simply have deterrents, sanctions and disciplinary treatments, but that the way to take on potential issues 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 educating gamers about sports betting wagering you enhance integrity which remains in everyone's interest," he adds.


"If gamers are harder to corrupt then sport will be harder to corrupt."


'Brand damage'


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


"Prevention is much better than remedy, and we likewise make a point of telling gamers '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 individuals don't want to bet, that is not in gaming companies' interests, and it is not in our interests."


He said that when a great reputation was lost, the damage to a sport was "enormous".


FA rules mean players are not enabled to bet on a competition in which they are included.


Mr Johnson states players need to be seen not to be cashing in on any inside understanding, which he states could cause "brand name damage" to football and its competitions.


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 need to get over to gamers the reputational threat to the video game," he states. "Once confidence has been damaged it is tough to get it back - mud sticks."


'Overwhelmingly legal'


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


The Gambling Commission was set up under the Gambling Act 2005 to control business betting in Great Britain.


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


"The frustrating majority of sports betting happening through UK operators is legal and fair," he says.


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


"Such unfaithful has the possible to undermine the stability of a sport, and it also damages the commercial interests of sports bodies and sports betting."


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


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


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


In May 2010, the commission also presented a private 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 male who was cautioned for unfaithful in relation to greyhound racing.


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


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

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Meanwhile, he says a lot of those wanting to cheat the sports betting market were well-informed about sports and sporting people, and about betting operations and the motion of money.


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


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