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Sport betting market seeks to protect itself

16 September 2010

By Bill Wilson

Business press reporter, BBC News

sports betting on sport is substantial business.

Sport England estimates the value of spending on sport-related gaming 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 estimated ₤ 1bn bet on the World Cup alone in the UK this summer.

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

But when the integrity of events are struck the gambling industry suffers, and revenues are put under threat if clients can not wager with confidence.

And there can have been few higher-profile sport betting 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 only is it a significant market in world business, it is one that is now on the front pages of papers.”

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

Three of these players have actually 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 champ John Higgins was cleared of match-fixing allegations, but was banned recently for 6 months for failing to report the prohibited approach to him to toss frames.

There are also 2 other continuing examinations - unrelated to Mr Higgins - into snooker.

‘Honest’

David O’Reilly is legal counsel for Betfair, one of the UK’s most significant online sporting exchanges.

“If the sport is viewed as sincere, straight and reasonable that is great for sports betting companies because individuals will invest cash betting with self-confidence,” he states.

“If you take the Pakistan allegations, although unassociated to the UK regulated sports betting market … it is not actually a favorable story for wagering in the UK.

“That is since the perception is that ‘cricket is now something we might need to beware 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 needs to be on sportsmen and sportswomen.

As Simon Taylor of the Professional Players’ Federation explains: “The only individuals who can fix a match are the competitors or the referee.”

His organisation represents men and women 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 inadequate to simply have deterrents, sanctions and disciplinary procedures, but that the way to take on potential issues around is likewise through education.

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

“Through educating players about sports betting you reinforce stability and that is in everybody’s interest,” he adds.

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

‘Brand damage’
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Matt Johnson, head of regulative legal recommendations at the Football Association, concurs.

“Prevention is much better than treatment, and we likewise make a point of informing players ‘you are going to be caught’.”

“It is crucial that sport is directly, and is seen to be straight,” he includes.

“If it loses that then individuals do not 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 track record was lost, the damage to a sport was “incalculable”.

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

Mr Johnson states players have actually to be seen not to be capitalizing any inside knowledge, which he says might cause “brand damage” to football and its competitors.

So, even a 2nd Division player knocked out of the FA Cup in the fall can not bet on a Manchester United v Chelsea cup final the following spring.

“We have to get over to players the reputational danger to the video game,” he says. “Once confidence has actually been damaged it is tough to get it back - mud sticks.”

‘Overwhelmingly legal’

If this represents the “carrot” approach, then possibly Nick Tofiluk, director of guideline at the Gambling Commission, represents the “stick”.
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The Gambling Commission was established under the Gambling Act 2005 to control commercial gambling 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 betting, which is the remit of the FSA.

“The frustrating bulk of sports betting wagering occurring through UK operators is legal and fair,” he states.

“But for some there is the temptation to … corruptly hinder the outcome of a sporting event.

“Such unfaithful has the potential to undermine the integrity of a sport, and it also harms the industrial interests of sports betting bodies and sports betting.”
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The commission has actually established an in-house Sports Betting Intelligence Unit to get and distribute details to sporting authorities, sports betting companies and policing authorities.

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

“We will signal sports betting of our concerns, to help prevent or cut [unlawful] activity”

In May 2010, the commission also introduced a personal telephone hotline for those with details or suspicions.

‘Vulnerabilities’

But in a two-and-a-half year period there has actually been just one prosecution, a 24-year-old guy who was warned for unfaithful in relation to greyhound racing.

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

He said that where an investigation by a sport governing body was quicker, and more cost reliable, 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 seeking to cheat the sports betting wagering market were educated about sports betting and sporting people, and about betting operations and the movement of money.

“They look for the vulnerabilities of these to assist in their business.”

Related internet links

World sports betting Law Report

ICC

Professional Players Federation

Professional Footballers’ Association

The FA

Betfair

Sport & Markt
bit.ly
BLP

Gambling Commission