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Sport wagering market aims to protect itself
16 September 2010
By Bill Wilson
Business reporter, BBC News
sports betting on sport is huge company.
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.
Which figure is likely to have grown even more, with an estimated ₤ 1bn bet on the World Cup alone in the UK this summer.
Meanwhile, German research company Sport & Markt approximates the total global gambling market will be worth 263bn euros (₤ 220bn) by 2012, with much of that driven by internet and sports betting.
But when the stability of events are hit the gambling industry suffers, and revenues are put under danger if consumers can not wager 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 business, 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 stated they will also 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 accusations, but was banned recently for 6 months for failing to report the illegal method to him to toss frames.
There are likewise 2 other continuing investigations - not associated 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 perceived as honest, straight and reasonable that benefits sports betting firms since individuals will invest money wagering with self-confidence," he says.
"If you take the Pakistan accusations, although unrelated to the UK regulated wagering industry ... it is not actually a favorable story for wagering in the UK.
"That is because the understanding is that 'cricket is now something we may need to beware about'."
'Education'
So what can be done to avoid future scandals?
According to experts 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 mentions: "The only people who can repair a match are the competitors or the referee."
His organisation represents men and ladies 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 inadequate to simply have deterrents, sanctions and disciplinary treatments, but that the way to deal with prospective issues around gamers is likewise through education.
Mr Taylor states rules need to be discussed clearly to gamers with clear examples, and by people they appreciate.
"Through educating players about sports betting you strengthen integrity and that remains in everyone'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 advice at the Football Association, concurs.
"Prevention is better than cure, and we also make a point of informing players 'you are going to be captured'."
"It is imperative 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 gaming firms' interests, and it is not in our interests."
He said that once a good track record was lost, the damage to a sport was "incalculable".
FA guidelines indicate players are not enabled to bank on a competitors in which they are included.
Mr Johnson says gamers have actually to be seen not to be capitalizing any inside understanding, which he states might cause "brand damage" to football and its competitions.
So, even a Second 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 risk to the video game," he says. "Once confidence has actually been damaged it is tough to get it back - mud sticks."
'Overwhelmingly legal'
If this represents the "carrot" technique, then maybe Nick Tofiluk, director of guideline at the Gambling Commission, represents the "stick".
The Gambling Commission was established under the Gambling Act 2005 to manage commercial gaming in Great Britain.
An ex-chief constable of West Midlands cops, Mr Tofiluk has responsibility for policing all sports betting in the UK apart from spread sports betting, which is the remit of the FSA.
"The overwhelming bulk of sports betting taking location through UK operators is legal and reasonable," he states.
"But for some there is the temptation to ... corruptly hinder the outcome of a sporting event.
"Such cheating has the prospective to weaken the stability of a sport, and it also damages the commercial interests of sports betting bodies and sports betting wagering."
The commission has actually developed an in-house Sports Betting Intelligence Unit to receive and disseminate info to sporting authorities, sports betting companies and policing authorities.
"Since 2007 we have experienced a substantial insight into world of corrupt sports betting," he says.
"We will alert sports betting of our concerns, to help avoid or reduce [unlawful] activity"
In May 2010, the commission also introduced a personal telephone hotline for those with details or suspicions.
'Vulnerabilities'
But in a two-and-a-half year duration there has been simply one prosecution, a 24-year-old male who was warned for unfaithful in relation to greyhound racing.
However, Mr Tofiluk states there are still eight continuous investigations, and that much useful info has actually also 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 discontinuing a criminal examination "in favour of letting sports betting governing bodies take the lead".
Meanwhile, he states many of those seeking to cheat the sports betting market were experienced 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 help in their business."
Related internet links
World sports betting Law Report
ICC
Professional Players Federation
Professional Footballers' Association
The FA
Betfair
Sport & Markt
BLP
Gambling Commission |
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