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Sport wagering market looks to safeguard itself
16 September 2010
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By Bill Wilson
Business reporter, BBC News
sports betting on sport is huge company.
Sport England approximates the worth of spending on sport-related gambling 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 estimated ₤ 1bn bet on the World Cup alone in the UK this summer season.
Meanwhile, German research study company Sport & Markt approximates the general global gambling market will deserve 263bn euros (₤ 220bn) by 2012, with much of that driven by internet and sports betting gambling.
But when the stability of occasions are hit the gambling industry suffers, and incomes are put under danger if customers can not wager with confidence.
And there can have been couple of higher-profile sport sports betting stories than those impacting cricket and snooker this year.
High-profile
As Sport & Markt's Gareth Moore observes: "Everyone talks 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 papers."
Four Pakistan cricketers have been questioned by police over spot-fixing allegations connecting to a test versus England at Lord's last month.
Three of these gamers have actually said 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 champion John Higgins was cleared of match-fixing allegations, but was banned recently for six months for failing to report the illegal approach to him to toss frames.
There are likewise two other continuing investigations - unrelated 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 perceived as sincere, straight and reasonable that benefits wagering companies because people will spend cash sports betting with self-confidence," he states.
"If you take the Pakistan accusations, although unassociated to the UK controlled wagering 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 take care 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 has to be on sportsmen and sportswomen.
As Simon Taylor of the Professional Players' Federation mentions: "The only people who can fix a match are the competitors or the referee."
His organisation represents males 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 merely have deterrents, sanctions and disciplinary procedures, however that the way to tackle prospective issues around gamers is also through education.
Mr Taylor says guidelines need to be described clearly to gamers with clear examples, and by people they respect.
"Through educating players about sports betting wagering you strengthen stability and that remains in everyone's interest," he includes.
"If gamers are harder to corrupt then sport will be harder to corrupt."
'Brand damage'
Matt Johnson, head of regulative legal guidance at the Football Association, concurs.
"Prevention is much better than cure, and we also make a point of telling players 'you are going to be captured'."
"It is necessary 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 stated that once an excellent reputation was lost, the damage to a sport was "incalculable".
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FA rules imply gamers are not allowed to bank on a competitors in which they are involved.
Mr Johnson states gamers have to be seen not to be cashing in on any inside knowledge, which he states might trigger "brand name damage" to football and its competitors.
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 have to overcome to players the reputational risk to the video game," he states. "Once confidence has been harmed it is tough to get it back - mud sticks."
'Overwhelmingly legal'
If this represents the "carrot" approach, then maybe Nick Tofiluk, director of policy at the Gambling Commission, represents the "stick".
The Gambling Commission was established under the Gambling Act 2005 to regulate commercial gaming in Great Britain.
An ex-chief constable of West Midlands cops, Mr Tofiluk has duty for all wagering in the UK apart from spread wagering, which is the remit of the FSA.
"The frustrating majority of sports betting happening through UK operators is legal and reasonable," he says.
"But for some there is the temptation to ... corruptly hinder the outcome of a sporting occasion.
"Such cheating has the potential to undermine the integrity of a sport, and it likewise damages the industrial interests of sports betting bodies and sports betting wagering."
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The commission has actually developed an internal Sports Betting Intelligence Unit to get and disseminate info to sporting authorities, sports betting firms and policing authorities.
"Since 2007 we have experienced a significant insight into world of corrupt sports betting wagering," he states.
"We will notify sports betting of our concerns, to assist prevent or cut [unlawful] activity"
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In May 2010, the commission also introduced a personal telephone hotline for those with info or suspicions.
'Vulnerabilities'
But in a two-and-a-half year duration there has actually been simply one prosecution, a 24-year-old man who was warned for cheating in relation to greyhound racing.
However, Mr Tofiluk says there are still eight ongoing investigations, which much helpful information has 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 think about discontinuing a criminal investigation "in favour of letting sports betting governing bodies take the lead".
Meanwhile, he says a lot of those seeking to cheat the sports betting wagering industry were experienced about sports betting and sporting individuals, and about wagering operations and the motion of cash.
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"They look for the vulnerabilities of these to assist in their business."
Related web 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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Sport Betting Industry Looks To Protect Itself
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