Sport wagering industry seeks to protect itself
16 September 2010
By Bill Wilson
Business press reporter, BBC News
sports betting on sport is big service.
Sport England approximates the value of costs 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 even more, with an approximated ₤ 1bn bet on the World Cup alone in the UK this summer.
Meanwhile, German research company Sport & Markt estimates the general international gambling market will be worth 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 gaming market suffers, and earnings are put under danger if customers 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 only is it a considerable market in world service, 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 connecting to 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 champion John Higgins was cleared of match-fixing allegations, but was banned last week for six months for failing to report the prohibited technique to him to toss frames.
There are also two other continuing examinations - not related to Mr Higgins - into snooker.
'Honest'
David O'Reilly is legal counsel for Betfair, among the UK's most significant online sporting exchanges.
"If the sport is perceived as honest, straight and reasonable that benefits sports betting firms since individuals will invest cash sports betting with self-confidence," he says.
"If you take the Pakistan allegations, although unassociated to the UK regulated sports betting market ... it is not really a favorable story for sports betting in the UK.
"That is since the understanding is that 'cricket is now something we may need to be careful about'."
'Education'
So what can be done to prevent future scandals?
According to professionals at a World sports betting Law Report conference into sports betting, the focus has to be on sportspersons and sportswomen.
As Simon Taylor of the Professional Players' Federation points out: "The only individuals who can repair a match are the rivals 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 believes that it is inadequate to simply have deterrents, sanctions and disciplinary treatments, but that the method to tackle potential issues around gamers is also through education.
Mr Taylor says guidelines need to be explained plainly to gamers with clear examples, and by individuals they respect.
"Through educating gamers about sports betting you strengthen integrity and that remains in everybody's interest," he includes.
"If players are more difficult to corrupt then sport will be harder to corrupt."
'Brand damage'
Matt Johnson, head of regulative legal advice at the Football Association, concurs.
"Prevention is much better than cure, and we likewise make a point of informing players 'you are going to be captured'."
"It is vital 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 sports betting companies' interests, and it is not in our interests."
He stated that once a great credibility was lost, the damage to a sport was "incalculable".
FA rules imply players are not permitted to bank on a competitors in which they are involved.
Mr Johnson says players need to be seen not to be capitalizing any inside knowledge, which he states could trigger "brand damage" to football and its competitors.
So, even a 2nd Division gamer knocked out of the FA Cup in the fall can not bank on a Manchester United v Chelsea cup last the following spring.
"We need to get over to players the reputational threat to the game," he states. "Once confidence has actually been damaged it is difficult to get it back - mud sticks."
'Overwhelmingly legal'
If this represents the "carrot" technique, then maybe Nick Tofiluk, director of guideline at the Gambling Commission, represents the "stick".
The Gambling Commission was established under the Gambling Act 2005 to regulate business gaming 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 wagering, which is the remit of the FSA.
"The overwhelming bulk of sports betting wagering happening through UK operators is legal and fair," he states.
"But for some there is the temptation to ... corruptly disrupt the result of a sporting occasion.
"Such cheating has the prospective to weaken the integrity of a sport, and it also hurts the business interests of sports betting bodies and sports betting wagering."
The commission has actually established an in-house Sports Betting Intelligence Unit to get and distribute details to sporting authorities, wagering companies and policing authorities.
"Since 2007 we have experienced a considerable insight into world of corrupt sports betting wagering," he says.
"We will inform sports betting of our issues, to help avoid or cut [unlawful] activity"
In May 2010, the commission also presented a personal telephone hotline for those with info or suspicions.
'Vulnerabilities'
But in a two-and-a-half year period there has actually been simply one criminal prosecution, a 24-year-old male who was cautioned for unfaithful in relation to greyhound racing.
However, Mr Tofiluk states there are still eight ongoing examinations, which much beneficial info has also been passed to sports betting authorities.
He said that where an examination by a sport governing body was quicker, and more cost efficient, then the commission would think about terminating 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 industry were experienced about sports betting and sporting individuals, and about wagering operations and the motion of money.
"They look for the vulnerabilities of these to assist in their enterprises."
Related internet 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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