Sport Betting Industry Wants To Protect Itself

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Sport betting industry looks to secure itself

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Sport wagering industry seeks to protect itself

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16 September 2010

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By Bill Wilson


Business reporter, BBC News


sports betting on sport is big company.


Sport England approximates the worth of spending on sport-related sports betting in England grew from ₤ 1.7 bn in 1985 to ₤ 2.8 bn in 2008.


Which 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 study firm Sport & Markt approximates the total worldwide gambling market will deserve 263bn euros (₤ 220bn) by 2012, with much of that driven by web and sports betting.


But when the integrity of occasions are struck the sports betting industry suffers, and earnings are put under threat if consumers can not bet with confidence.


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


High-profile


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


"Not only is it a substantial 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 connecting to a test versus England at Lord's last month.


Three of these players have actually said they will also challenge the corruption charges installed 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 recently for six months for failing to report the unlawful technique to him to throw frames.


There are likewise 2 other continuing investigations - unrelated to Mr Higgins - into snooker.


'Honest'


David O'Reilly is legal counsel for Betfair, one of the UK's biggest online sporting exchanges.


"If the sport is perceived as truthful, straight and reasonable that is excellent for sports betting firms due to the fact that people will spend cash sports betting with confidence," he states.


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


"That is because the understanding is that 'cricket is now something we might need to be cautious 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 sportspersons and sportswomen.


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


His organisation represents guys and ladies 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 insufficient to merely have deterrents, sanctions and disciplinary treatments, however that the method to tackle potential concerns around gamers is also through education.

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


"Through informing gamers about sports betting you reinforce stability and that is in everybody's interest," he includes.


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


'Brand damage'


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


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


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


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


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


FA rules mean gamers are not allowed to wager on a competitors in which they are involved.


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


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


"We need to get over to gamers the reputational risk to the video game," he states. "Once self-confidence has actually 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 regulation at the Gambling Commission, represents the "stick".


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

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


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


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


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


The commission has established an internal Sports Betting Intelligence Unit to get and disseminate info to sporting authorities, wagering 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 concerns, to assist avoid or cut [prohibited] activity"


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


'Vulnerabilities'


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


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


He stated that where an investigation by a sport governing body was quicker, and more cost efficient, 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 wanting to cheat the sports betting industry were educated about sports betting and sporting individuals, and about sports betting operations and the motion of cash.


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


Related internet links


World sports betting Law Report


ICC


Professional Players Federation


Professional Footballers' Association


The FA


Betfair


Sport & Markt


BLP

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Gambling Commission


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