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Sport sports betting market wants to secure itself

16 September 2010
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By Bill Wilson

Business reporter, BBC News

sports betting on sport is big business.

Sport England approximates the worth 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 likely to have actually 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 overall international gambling market will be worth 263bn euros (₤ 220bn) by 2012, with much of that driven by web and sports betting gambling.

But when the stability of occasions are struck the gambling market suffers, and revenues are put under risk if clients can not bet with confidence.

And there can have been few higher-profile sport sports betting stories than those impacting cricket and snooker this year.

High-profile

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

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

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

Three of these gamers have actually stated they will likewise challenge the corruption charges installed versus the trio by the sport governing body the International Cricket Council.

Meanwhile, three-times snooker world champ John Higgins was cleared of match-fixing claims, but was prohibited recently for 6 months for failing to report the unlawful technique to him to throw frames.

There are likewise two other continuing investigations - not associated 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 viewed as sincere, straight and reasonable that benefits wagering companies because people will spend cash wagering with self-confidence," he says.

"If you take the Pakistan claims, although unrelated to the UK regulated wagering market ... it is not really a positive story for sports betting in the UK.

"That is due to the fact that the understanding 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 experts 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 people who can fix a match are the rivals or the referee."

His organisation represents guys and women in 15 sports betting in the UK, being an umbrella organisation for all gamer organisations, such as the Professional Footballers' Association.

He believes that it is insufficient to merely have deterrents, sanctions and disciplinary procedures, but that the way to deal with potential problems around gamers is likewise through education.

Mr Taylor states rules need to be described clearly to gamers with clear examples, and by people they appreciate.

"Through informing gamers about sports betting you enhance integrity and that remains in everybody's interest," he adds.

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

'Brand damage'

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

"Prevention is much better than cure, and we likewise make a point of informing gamers 'you are going to be caught'."
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"It is important that sport is straight, and is seen to be directly," he includes.

"If it loses that then individuals do not wish to bet, that is not in sports betting firms' interests, and it is not in our interests."

He said that as soon as a great track record was lost, the damage to a sport was "enormous".

FA guidelines imply gamers are not allowed to wager on a competition in which they are involved.

Mr Johnson states players need to be seen not to be capitalizing any inside knowledge, which he says could trigger "brand damage" to football and its competitors.

So, even a 2nd Division player out of the FA Cup in the fall can not bank on a Manchester United v Chelsea cup final the following spring.
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"We have to get over to players the reputational danger to the video game," he says. "Once confidence has actually been harmed it is tough to get it back - mud sticks."

'Overwhelmingly legal'

If this represents the "carrot" method, then perhaps Nick Tofiluk, director of policy at the Gambling Commission, represents the "stick".

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

An ex-chief constable of West Midlands police, Mr Tofiluk has obligation for policing all wagering in the UK apart from spread wagering, which is the remit of the FSA.

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

"But for some there is the temptation to ... corruptly interfere with the outcome of a sporting event.

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

The commission has actually developed an internal Sports Betting Intelligence Unit to get and disseminate information to sporting authorities, sports betting firms and policing authorities.

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

"We will inform sports betting of our concerns, to help prevent or curtail [unlawful] activity"

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

'Vulnerabilities'

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

However, Mr Tofiluk says there are still 8 ongoing investigations, which much beneficial info 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 consider stopping a criminal examination "in favour of letting sports betting governing bodies take the lead".

Meanwhile, he states a lot of those aiming to cheat the sports betting market were educated about sports betting and sporting individuals, and about wagering operations and the movement of money.

"They seek out the vulnerabilities of these to assist in their enterprises."

Related web links

World sports betting Law Report

ICC

Professional Players Federation
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Professional Footballers' Association

The FA

Betfair

Sport & Markt
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BLP

Gambling Commission