Sport wagering market wants to protect itself

16 September 2010

By Bill Wilson

Business reporter, BBC News

sports betting on sport is big company.

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

Which figure is most 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 firm Sport & Markt approximates the total international 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 occasions are hit the gaming market suffers, and revenues are put under risk if customers can not wager 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 discuss the sports betting market now.

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

Four Pakistan cricketers have been questioned by police over spot-fixing claims relating to a test against England at Lord's last month.
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Three of these players have actually said they will likewise challenge the corruption charges mounted 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 claims, but was banned recently for six months for failing to report the prohibited approach to him to throw frames.

There are likewise 2 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 perceived as sincere, straight and reasonable that benefits wagering firms due to the fact that people will spend money wagering with self-confidence," he states.
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"If you take the Pakistan accusations, although unassociated to the UK regulated wagering market ... it is not actually a positive story for sports betting 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 prevent 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 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 Association.

He believes that it is not sufficient to simply have deterrents, sanctions and disciplinary procedures, however that the method to take on possible concerns around gamers is likewise through education.

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

"Through informing gamers about sports betting wagering you reinforce stability and that remains in everybody'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 regulative legal suggestions at the Football Association, concurs.

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

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

"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 when an excellent credibility was lost, the damage to a sport was "enormous".

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

Mr Johnson says gamers need to be seen not to be capitalizing any inside understanding, which he says might 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 bet on a Manchester United v Chelsea cup final the following spring.

"We need to get over to players the reputational danger to the game," he states. "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 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 manage industrial 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 sports betting, which is the remit of the FSA.
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"The overwhelming majority of sports betting wagering occurring through UK operators is legal and fair," he states.
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"But for some there is the temptation to ... corruptly hinder the outcome of a sporting occasion.

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

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

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

"We will notify sports betting of our concerns, to assist prevent or cut [illegal] activity"

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

'Vulnerabilities'

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

However, Mr Tofiluk states there are still eight ongoing investigations, and that much useful details has actually also been passed to sports betting authorities.

He said that where an examination by a sport governing body was quicker, and more expense reliable, then the commission would think about discontinuing a criminal investigation "in favour of letting sports betting governing bodies take the lead".
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Meanwhile, he says much of those seeking to cheat the sports betting wagering industry were well-informed about sports betting and sporting individuals, and about sports betting operations and the movement of cash.

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

Related web 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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