Sport Betting Industry Aims To Protect Itself

Sport wagering market seeks to safeguard itself

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16 September 2010

By Bill Wilson

Business press reporter, BBC News

sports betting on sport is huge company.

Sport England approximates the worth of spending 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 further, with an approximated ₤ 1bn bet on the World Cup alone in the UK this summertime.

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

But when the integrity of events are hit the sports betting industry suffers, and profits are put under threat if clients can not bet with 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 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 actually been questioned by cops over spot-fixing accusations relating to a test versus England at Lord's last month.

Three of these players have actually said they will likewise challenge the corruption charges mounted versus 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 banned last week for six months for failing to report the illegal method to him to toss frames.

There are likewise two other continuing investigations - unrelated to Mr Higgins - into snooker.

'Honest'

David O'Reilly is legal counsel for Betfair, among the UK's greatest online sporting exchanges.

"If the sport is viewed as honest, straight and reasonable that benefits sports betting firms due to the fact that people will invest cash wagering with confidence," he states.

"If you take the Pakistan accusations, although unassociated to the UK regulated 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 be mindful about'."

'Education'

So what can be done to prevent future scandals?

According to professionals at a World sports betting Law Report conference into sports betting gambling, the focus has to be on sportspersons and sportswomen.

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

His organisation represents males and females 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 insufficient to simply have deterrents, sanctions and disciplinary procedures, but that the way to deal with possible issues around gamers is likewise through education.

Mr Taylor says guidelines require to be described plainly to gamers with clear examples, and by people they appreciate.

"Through educating gamers about sports betting you enhance stability which is in everybody's interest," he includes.

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

'Brand damage'

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

"Prevention is better than remedy, and we likewise make a point of telling players 'you are going to be captured'."

"It is necessary that sport is directly, and is seen to be directly," he includes.

"If it loses that then individuals do not want to bet, that is not in sports betting companies' 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 guidelines indicate players are not permitted to wager on a competitors in which they are included.

Mr Johnson states players have actually to be seen not to be capitalizing any inside knowledge, which he says could cause "brand damage" to football and its competitors.

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 last the following spring.

"We have to overcome to gamers the reputational danger to the video game," he says. "Once self-confidence has actually 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 guideline at the Gambling Commission, represents the "stick".

The Gambling Commission was set up under the Gambling Act 2005 to regulate industrial sports betting in Great Britain.

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

"The overwhelming bulk of sports betting occurring through UK operators is legal and reasonable," he says.

"But for some there is the temptation to ... corruptly hinder the outcome of a sporting occasion.

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

The commission has established an in-house Sports Betting Intelligence Unit to receive and disseminate information to sporting authorities, wagering firms and policing authorities.

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

"We will inform sports betting of our concerns, to assist avoid or curtail [illegal] 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 duration there has actually been just one criminal prosecution, a 24-year-old guy who was cautioned for unfaithful in relation to greyhound racing.

However, Mr Tofiluk states there are still eight ongoing investigations, which much beneficial info 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 efficient, then the commission would think about ceasing a criminal examination "in favour of letting sports betting governing bodies take the lead".

Meanwhile, he states a lot of those aiming to cheat the sports betting industry were experienced about sports betting and sporting people, and about sports betting operations and the movement of money.

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