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Sport wagering industry looks to protect itself
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16 September 2010
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By Bill Wilson

Business press reporter, BBC News

sports betting on sport is big service.

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

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

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

But when the integrity of events are hit the gambling market suffers, and incomes are put under hazard if clients can not bet with self-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 talks about the sports betting gambling market now.

"Not only is it a substantial 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 associating with a test versus England at Lord's last month.

Three of these gamers have said they will also 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, however was prohibited recently for six months for failing to report the prohibited method to him to throw frames.

There are likewise 2 other continuing investigations - unrelated to Mr Higgins - into snooker.

'Honest'

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

"If the sport is perceived as truthful, straight and fair that is excellent for sports betting firms due to the fact that people will invest money sports betting with self-confidence," he says.

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

"That is since the perception is that 'cricket is now something we may need to take care 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 needs to be on sportsmen and sportswomen.

As of the Professional Players' Federation points out: "The only individuals 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 gamer organisations, such as the Professional Footballers' Association.

He thinks that it is not enough to simply have deterrents, sanctions and disciplinary procedures, but that the method to deal with possible issues around gamers is likewise through education.

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

"Through educating gamers about sports betting wagering you enhance stability and that is in everybody's interest," he includes.

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

'Brand damage'

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

"Prevention is better than treatment, and we also make a point of telling players 'you are going to be captured'."

"It is essential that sport is directly, and is seen to be straight," he adds.

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

He stated that as soon as an excellent credibility was lost, the damage to a sport was "enormous".

FA guidelines suggest players are not enabled to bank on a competitors in which they are involved.

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

'Overwhelmingly legal'

If this represents the "carrot" technique, then possibly Nick Tofiluk, director of regulation at the Gambling Commission, represents the "stick".

The Gambling Commission was established under the Gambling Act 2005 to manage business sports betting in Great Britain.

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

"The overwhelming bulk of sports betting wagering 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 event.

"Such unfaithful has the prospective to weaken the integrity of a sport, and it likewise damages the business interests of sports betting bodies and sports betting."

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

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

"We will signal sports betting of our concerns, to assist avoid or cut [illegal] activity"
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In May 2010, the commission likewise presented a personal telephone hotline for those with information or suspicions.

'Vulnerabilities'

But in a two-and-a-half year duration there has been just one criminal prosecution, a 24-year-old man who was warned for cheating in relation to greyhound racing.

However, Mr Tofiluk states there are still 8 continuous investigations, and that much useful information has also been passed to sports betting authorities.

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

Meanwhile, he states a number of those seeking to cheat the sports betting industry were educated about sports betting and sporting people, and about wagering operations and the movement of cash.

"They seek out 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

BLP
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Gambling Commission

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