Sport sports betting industry seeks to protect itself
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16 September 2010
By Bill Wilson
Business reporter, BBC News
sports betting on sport is huge business.
Sport England approximates the worth 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 further, with an ₤ 1bn bet on the World Cup alone in the UK this summer.
Meanwhile, German research firm Sport & Markt estimates the total international gaming market will be worth 263bn euros (₤ 220bn) by 2012, with much of that driven by web and sports betting gaming.
But when the stability of events are hit the sports betting market suffers, and profits are put under threat if customers 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 discuss the sports betting market now.
"Not only is it a significant market in world company, it is one that is now on the front pages of newspapers."
Four Pakistan cricketers have been questioned by cops over spot-fixing accusations 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 allegations, however was prohibited last week for 6 months for failing to report the prohibited approach to him to throw frames.
There are also two other continuing examinations - unrelated 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 viewed as truthful, straight and reasonable 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 claims, although unrelated to the UK managed wagering market ... it is not really a positive story for sports betting in the UK.
"That is because the perception is that 'cricket is now something we may have to be mindful 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, the focus has to be on sportsmen and sportswomen.
As Simon Taylor of the Professional Players' Federation explains: "The only individuals who can repair a match are the rivals or the referee."
His organisation represents men and females 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 insufficient to simply have deterrents, sanctions and disciplinary procedures, however that the method to deal with prospective concerns around gamers is likewise through education.
Mr Taylor says rules need to be explained plainly to players with clear examples, and by individuals they appreciate.
"Through educating gamers about sports betting you enhance stability and that is in everyone's interest," he adds.
"If gamers are more difficult 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 much better than cure, and we likewise make a point of telling players 'you are going to be captured'."
"It is vital that sport is straight, and is seen to be straight," he includes.
"If it loses that then individuals do not desire to wager, that is not in gaming firms' 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 "incalculable".
FA rules indicate gamers are not permitted to wager on a competition in which they are involved.
Mr Johnson states players need to be seen not to be capitalizing any inside knowledge, which he states could trigger "brand name damage" to football and its competitions.
So, even a Second Division player 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 overcome to gamers the reputational threat to the video game," he says. "Once confidence has actually been harmed it is difficult to get it back - mud sticks."
'Overwhelmingly legal'
If this represents the "carrot" technique, 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 manage industrial 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 wagering, which is the remit of the FSA.
"The frustrating majority of sports betting wagering taking place through UK operators is legal and reasonable," he says.
"But for some there is the temptation to ... corruptly disrupt the outcome of a sporting event.
"Such cheating has the possible to weaken the integrity of a sport, and it likewise hurts the industrial interests of sports betting bodies and sports betting wagering."
The commission has developed an internal Sports Betting Intelligence Unit to get and disseminate details to sporting authorities, sports betting companies and policing authorities.
"Since 2007 we have actually experienced a considerable insight into world of corrupt sports betting," he states.
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"We will signal sports betting of our concerns, to help avoid or cut [prohibited] activity"
In May 2010, the commission likewise introduced a private telephone hotline for those with details or suspicions.
'Vulnerabilities'
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But in a two-and-a-half year period there has been simply one 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, and that much helpful info has also been passed to sports betting authorities.
He said that where an examination by a sport governing body was quicker, and more cost efficient, then the commission would consider terminating a criminal investigation "in favour of letting sports betting governing bodies take the lead".
Meanwhile, he says much of those seeking 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 look for the vulnerabilities of these to help in their enterprises."
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Related web links
World sports betting Law Report
ICC
Professional Players Federation
Professional Footballers' Association
The FA
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Betfair
Sport & Markt
BLP
Gambling Commission
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Sport Betting Industry Wants To Protect Itself
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