Sport wagering market wants to secure itself

16 September 2010

By Bill Wilson

Business press reporter, BBC News

sports betting on sport is substantial company.

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

And that figure is most likely to have grown further, with an estimated ₤ 1bn bet on the World Cup alone in the UK this summertime.

Meanwhile, German research study company Sport & Markt approximates the overall international sports betting market will deserve 263bn euros (₤ 220bn) by 2012, with much of that driven by web and sports betting gambling.

But when the integrity of occasions are struck the sports betting market suffers, and incomes are put under danger if customers can not bet with confidence.

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

High-profile

As Sport & Markt's Gareth Moore observes: "Everyone talks about 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 papers."

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

Three of these gamers have actually stated they will also challenge the corruption charges mounted 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 stopping working to report the unlawful approach to him to throw 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 truthful, straight and reasonable that is great for wagering companies since people will invest money sports betting with self-confidence," he says.

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

"That is due to the fact that the perception is that 'cricket is now something we may have to be mindful 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 gambling, the focus needs to be on sportspersons and sportswomen.

As Simon Taylor of the Professional Players' Federation mentions: "The only individuals who can fix a match are the rivals 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 insufficient to simply have deterrents, sanctions and disciplinary treatments, but that the method to deal with prospective problems around gamers is also through education.

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

"Through educating gamers about sports betting wagering you strengthen integrity and that remains in everyone's interest," he includes.

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

'Brand damage'

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

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

"It is imperative that sport is straight, and is seen to be straight," he includes.
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"If it loses that then people don't want to bet, that is not in gaming companies' interests, and it is not in our interests."

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

FA rules indicate gamers are not permitted to bank on a competitors in which they are involved.

Mr Johnson says gamers have to be seen not to be cashing in on any inside understanding, which he says could trigger "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.
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"We have to overcome to gamers the reputational threat to the game," he says. "Once confidence has actually been damaged it is difficult to get it back - mud sticks."

'Overwhelmingly legal'

If this represents the "carrot" approach, then perhaps 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 betting in Great Britain.

An ex-chief constable of West Midlands police, 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 taking place through UK operators is legal and reasonable," he states.

"But for some there is the temptation to ... corruptly disrupt the result of a sporting event.

"Such cheating has the potential to undermine the integrity of a sport, and it likewise hurts the business interests of sports betting bodies and sports betting."

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

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

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

In May 2010, the commission likewise introduced a confidential telephone hotline for those with info or suspicions.

'Vulnerabilities'

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

However, Mr Tofiluk says there are still eight ongoing examinations, and that much useful details has also been passed to sports betting authorities.
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He stated that where an examination by a sport governing body was quicker, and more cost reliable, then the commission would consider stopping a criminal investigation "in favour of letting sports betting governing bodies take the lead".

Meanwhile, he states a number of those looking to cheat the sports betting wagering industry were experienced about sports betting and sporting individuals, and about wagering operations and the movement of cash.

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

Related internet links
bet9ja.com
World sports betting Law Report

ICC

Professional Players Federation

Professional Footballers' Association

The FA

Betfair

Sport & Markt

BLP

Gambling Commission
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