Sport Betting Industry Looks To Protect Itself

Sport wagering market looks to secure itself

16 September 2010

By Bill Wilson

Business press reporter, BBC News

sports betting on sport is huge organization.

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.

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

Meanwhile, German research company Sport & Markt estimates the general international gaming market will deserve 263bn euros (₤ 220bn) by 2012, with much of that driven by internet and sports betting.

But when the stability of occasions are hit the gaming industry suffers, and earnings are put under hazard if customers can not wager with self-confidence.

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

High-profile

As Sport & Markt's Gareth Moore observes: "Everyone discuss 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 newspapers."

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

Three of these gamers have actually stated they will also challenge the corruption charges installed 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 claims, but was banned last week for 6 months for failing to report the illegal approach to him to toss frames.

There are likewise 2 other continuing examinations - unrelated 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 perceived as truthful, straight and reasonable that benefits sports betting firms due to the fact that people will spend money wagering with confidence," he says.

"If you take the Pakistan claims, although unassociated to the UK regulated wagering industry ... it is not actually a favorable story for sports betting in the UK.

"That is due to the fact that the perception is that 'cricket is now something we might have to take care about'."

'Education'

So what can be done to prevent future scandals?

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

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

His organisation represents males and women 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 sufficient to merely have deterrents, sanctions and disciplinary procedures, however that the method to take on potential concerns around players is also through education.

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

"Through informing players about sports betting you strengthen integrity which is in everybody's interest," he includes.

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

'Brand damage'

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

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

"It is crucial that sport is straight, and is seen to be straight," he adds.

"If it loses that then individuals do not desire to wager, that is not in sports betting firms' interests, and it is not in our interests."

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He stated that when a good track record was lost, the damage to a sport was "enormous".

FA guidelines mean players are not enabled to wager on a competition in which they are included.

Mr Johnson says gamers need to be seen not to be capitalizing any inside knowledge, which he says might cause "brand damage" to football and its competitions.

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

"We have to overcome to players the reputational danger to the video game," he says. "Once self-confidence has actually been damaged it is tough to get it back - mud sticks."

'Overwhelmingly legal'

If this represents the "carrot" approach, 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 control business gaming in Great Britain.

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

"The overwhelming 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 result of a sporting occasion.

"Such cheating has the possible to undermine the integrity of a sport, and it also harms the commercial interests of sports betting bodies and sports betting."

The commission has actually established an in-house Sports Betting Intelligence Unit to get and share info to sporting authorities, sports betting firms and policing authorities.

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

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

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

'Vulnerabilities'

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

However, Mr Tofiluk states there are still 8 continuous examinations, and that much useful details has actually also been passed to sports betting authorities.

He said that where an examination by a sport governing body was quicker, and more cost reliable, then the commission would consider terminating a criminal investigation "in favour of letting sports governing bodies take the lead".

Meanwhile, he says much of those looking to cheat the sports betting wagering market were well-informed about sports betting and sporting individuals, and about wagering operations and the movement of cash.

"They seek out the vulnerabilities of these to assist in their enterprises."