1 Sport Betting Industry Seeks To Protect Itself
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Sport sports betting market wants to protect itself

16 September 2010
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By Bill Wilson

Business press reporter, BBC News

sports betting on sport is huge company.

Sport England estimates the value of costs on sport-related gaming in from ₤ 1.7 bn in 1985 to ₤ 2.8 bn in 2008.

And that figure is most likely to have grown even more, with an estimated ₤ 1bn bet on the World Cup alone in the UK this summer.

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

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 couple of higher-profile sport wagering 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 just is it a considerable market in world organization, it is one that is now on the front pages of newspapers."

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

Three of these players have actually stated they will also challenge the corruption charges mounted 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, but was prohibited last week for six months for failing to report the illegal approach to him to throw frames.

There are also 2 other continuing examinations - not associated 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 viewed as truthful, straight and fair that is excellent for betting firms because individuals will invest money wagering with self-confidence," he says.

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

"That is because the understanding is that 'cricket is now something we might have to be careful 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 has to be on sportspersons 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 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 inadequate to simply have deterrents, sanctions and disciplinary treatments, however that the way to deal with prospective problems around players is also through education.

Mr Taylor says rules need to be described plainly to gamers with clear examples, and by individuals they appreciate.

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

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

'Brand damage'

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

"Prevention is better than remedy, and we likewise make a point of informing gamers '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 desire to bet, that is not in gaming companies' interests, and it is not in our interests."

He stated that when a great track record was lost, the damage to a sport was "enormous".

FA guidelines mean gamers are not enabled to wager on a competition in which they are included.

Mr Johnson states players have to be seen not to be capitalizing 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 autumn can not bet on a Manchester United v Chelsea cup final the following spring.

"We have to overcome to gamers the reputational threat to the video game," he states. "Once self-confidence has been damaged it is hard to get it back - mud sticks."
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'Overwhelmingly legal'

If this represents the "carrot" method, 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 control industrial gambling 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 overwhelming majority of sports betting taking place through UK operators is legal and reasonable," he says.

"But for some there is the temptation to ... corruptly interfere with the result of a sporting event.

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

The commission has developed an in-house Sports Betting Intelligence Unit to get and disseminate information to sporting authorities, sports betting companies and policing authorities.

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

"We will inform sports betting of our issues, to assist avoid or curtail [unlawful] 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 period there has been just one prosecution, a 24-year-old male who was cautioned for cheating in relation to greyhound racing.

However, Mr Tofiluk says there are still 8 ongoing investigations, and that much useful info has actually also been passed to sports betting authorities.

He said that where an investigation 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 says a number of those wanting to cheat the sports betting wagering industry were educated about sports betting and sporting individuals, and about wagering operations and the movement of money.

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

Related web links

World sports betting Law Report

ICC

Professional Players Federation
bit.ly
Professional Footballers' Association

The FA

Betfair

Sport & Markt

BLP

Gambling Commission

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