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Sport sports betting industry looks to secure itself

16 September 2010
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By Bill Wilson

Business press reporter, BBC News

Betting on sport is huge organization.

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

And that figure is most likely to have actually grown further, with an approximated ₤ 1bn bet on the World Cup alone in the UK this summertime.

Meanwhile, German research company Sport & Markt approximates the total worldwide gaming market will be worth 263bn euros (₤ 220bn) by 2012, with much of that driven by web and sports betting gambling.

But when the integrity of occasions are struck the gaming market suffers, and profits are put under risk if clients can not wager with confidence.

And there can have been couple of higher-profile sport wagering than those affecting cricket and snooker this year.

High-profile

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

"Not only is it a considerable market in world organization, it is one that is now on the front pages of newspapers."

Four Pakistan cricketers have actually been questioned by cops over spot-fixing accusations associating with a test versus England at Lord's last month.

Three of these players have 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 accusations, however was banned last week for six months for failing to report the unlawful technique 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, one of the UK's biggest online sporting exchanges.

"If the sport is perceived as truthful, straight and fair that benefits wagering companies since individuals will invest money wagering with self-confidence," he says.

"If you take the Pakistan allegations, although unassociated to the UK regulated sports betting industry ... it is not actually a positive story for wagering in the UK.

"That is since 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 specialists at a World sports betting Law Report conference into sports betting gambling, the focus has to be on sportsmen and sportswomen.

As Simon Taylor of the Professional Players' Federation explains: "The only people who can repair 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 gamer organisations, such as the Professional Footballers' Association.
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He believes that it is not sufficient to simply have deterrents, sanctions and disciplinary treatments, but that the way to take on prospective problems around gamers is likewise through education.

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

"Through educating players about sports betting wagering you enhance stability which remains in everyone's interest," he includes.

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

'Brand damage'

Matt Johnson, head of regulatory legal recommendations at the Football Association, agrees.

"Prevention is better than remedy, and we likewise make a point of telling players 'you are going to be caught'."

"It is vital that sport is directly, and is seen to be directly," he includes.

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

He stated that when an excellent reputation was lost, the damage to a sport was "incalculable".

FA guidelines mean players are not permitted to wager on a competition in which they are included.

Mr Johnson states gamers have actually to be seen not to be capitalizing any inside understanding, which he states could trigger "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 overcome to players the reputational danger to the game," he says. "Once self-confidence has actually been damaged it is difficult to get it back - mud sticks."

'Overwhelmingly legal'
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If this represents the "carrot" approach, then perhaps Nick Tofiluk, director of guideline at the Gambling Commission, represents the "stick".

The Gambling Commission was set up under the Gambling Act 2005 to regulate industrial sports betting in Great Britain.

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

"The overwhelming bulk of sports betting occurring through UK operators is legal and reasonable," he states.

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

"Such unfaithful has the prospective to weaken the stability of a sport, and it likewise harms the commercial interests of sports betting bodies and sports betting."

The commission has actually developed an internal Sports Betting Intelligence Unit to get and share details to sporting authorities, wagering firms and policing authorities.

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

"We will alert sports betting of our issues, to assist avoid or curtail [unlawful] activity"

In May 2010, the commission likewise presented a private telephone hotline for those with details or suspicions.

'Vulnerabilities'

But in a two-and-a-half year period there has been simply one prosecution, a 24-year-old male who was cautioned for unfaithful in relation to greyhound racing.

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

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

Meanwhile, he says much of those looking to cheat the sports betting industry were knowledgeable about sports betting and sporting people, and about wagering operations and the movement of money.

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

Related internet links

World sports betting Law Report

ICC

Professional Players Federation

Professional Footballers' Association

The FA

Betfair

Sport & Markt
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BLP

Gambling Commission
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