Sport Betting Industry Looks To Protect Itself

Sport sports betting industry looks to safeguard itself

16 September 2010

By Bill Wilson

Business reporter, BBC News

sports betting on sport is substantial organization.

Sport England approximates the value of spending 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 actually grown even more, with an estimated ₤ 1bn bet on the World Cup alone in the UK this summer season.

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

But when the stability of events are struck the gaming market suffers, and incomes are put under threat if consumers can not bet with confidence.

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

High-profile

As Sport & Markt's Gareth Moore observes: "Everyone speak about the sports betting market now.

"Not just is it a substantial market in world organization, it is one that is now on the front pages of papers."

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

Three of these gamers have stated 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 champ John Higgins was cleared of match-fixing claims, however was banned last week for 6 months for stopping working to report the prohibited method to him to toss frames.

There are likewise two other continuing examinations - not related 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 perceived as truthful, straight and fair that is good for wagering companies due to the fact that individuals will invest money wagering with self-confidence," he states.

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

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

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'Education'

So what can be done to avoid 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 points out: "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 player organisations, such as the Professional Footballers' Association.

He believes that it is inadequate to merely have deterrents, sanctions and disciplinary treatments, however that the method to take on possible issues around players is likewise through education.

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

"Through informing gamers about sports betting wagering you strengthen integrity and that remains in everyone'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, agrees.

"Prevention is much better than treatment, and we likewise make a point of informing players 'you are going to be caught'."

"It is important that sport is directly, and is seen to be directly," he adds.

"If it loses that then individuals don't wish to bet, that is not in gaming companies' interests, and it is not in our interests."

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

FA guidelines suggest players are not enabled to bank on a competitors in which they are included.

Mr Johnson says players have actually to be seen not to be capitalizing any inside understanding, which he says might cause "brand damage" to football and its competitions.

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

"We need to overcome to gamers the reputational threat to the video game," he says. "Once self-confidence has actually been damaged it is hard to get it back - mud sticks."

'Overwhelmingly legal'

If this represents the "carrot" technique, then possibly Nick Tofiluk, director of policy 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 wagering in the UK apart from spread wagering, which is the remit of the FSA.

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

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

"Such cheating has the prospective to undermine the stability of a sport, and it also hurts the commercial interests of sports betting bodies and sports betting wagering."

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

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

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

In May 2010, the commission also introduced a private telephone hotline for those with information or suspicions.

'Vulnerabilities'

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

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

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

Meanwhile, he says a number of those looking to cheat the sports betting industry were well-informed about sports betting and sporting individuals, and about sports betting operations and the motion of money.

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