Sport Betting Industry Aims To Protect Itself

Sport wagering industry seeks to safeguard itself

16 September 2010

By Bill Wilson

Business press reporter, BBC News

sports betting on sport is big service.

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 approximated ₤ 1bn bet on the World Cup alone in the UK this summer.

Meanwhile, German research study company Sport & Markt estimates the total worldwide sports betting 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 industry suffers, and earnings are put under risk if consumers can not bet with confidence.

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

High-profile

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

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

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

Three of these players have actually stated they will likewise 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 claims, however was prohibited last week for 6 months for stopping working to report the unlawful method to him to toss frames.

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

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'Honest'

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

"If the sport is perceived as honest, straight and reasonable that is excellent for wagering firms because people will invest cash betting with confidence," he states.

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

"That is due to the fact that the understanding is that 'cricket is now something we might need to beware about'."

'Education'

So what can be done to avoid future scandals?

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

As Simon Taylor of the Professional Players' Federation mentions: "The only individuals who can fix 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 gamer organisations, such as the Professional Footballers' Association.

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He believes that it is insufficient to merely have deterrents, sanctions and disciplinary procedures, but that the method to deal with potential problems around players is likewise through education.

Mr Taylor states guidelines require to be described clearly to gamers with clear examples, and by individuals they appreciate.

"Through educating gamers about sports betting wagering you enhance integrity which remains in everyone's interest," he adds.

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

'Brand damage'

Matt Johnson, head of regulative legal recommendations 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 vital that sport is straight, and is seen to be straight," he includes.

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

He said that once a good reputation was lost, the damage to a sport was "enormous".

FA guidelines indicate gamers are not allowed to wager on a competitors in which they are included.

Mr Johnson states gamers need to be seen not to be cashing in on any inside understanding, which he says could trigger "brand damage" to football and its competitions.

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

"We need to get over to gamers the reputational danger to the video game," he states. "Once self-confidence has actually been harmed it is tough to get it back - mud sticks."

'Overwhelmingly legal'

If this represents the "carrot" method, 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 control industrial gambling in Great Britain.

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

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

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

"Such unfaithful has the possible to weaken the stability of a sport, and it likewise hurts the business interests of sports betting bodies and sports betting."

The commission has actually developed an in-house Sports Betting Intelligence Unit to receive and distribute information to sporting authorities, wagering companies and policing authorities.

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

"We will notify sports betting of our issues, to assist avoid or cut [illegal] activity"

In May 2010, the commission also presented a confidential telephone hotline for those with details 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 cheating in relation to greyhound racing.

However, Mr Tofiluk says there are still 8 ongoing examinations, which much beneficial information has actually likewise been passed to sports betting authorities.

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

Meanwhile, he states a lot of those wanting to cheat the sports betting industry were educated about sports betting and sporting individuals, and about betting operations and the movement of cash.

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