Sport Betting Industry Looks To Protect Itself

Betting on sport is huge business.
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Sport England estimates the value of costs on sport-related betting in England grew from ₤ 1.7 bn in 1985 to ₤ 2.8 bn in 2008.
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And that figure is most likely to have grown even more, with an estimated ₤ 1bn bet on the World Cup alone in the UK this summer.


Meanwhile, German research firm Sport & Markt estimates the general international gaming market will deserve 263bn euros (₤ 220bn) by 2012, with much of that driven by web and sports betting.


But when the stability of events are hit the gaming industry suffers, and revenues are put under hazard if customers can not bet with self-confidence.


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


High-profile


As Sport & Markt's Gareth Moore observes: "Everyone discuss the sports betting gambling 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 actually been questioned by police over spot-fixing allegations relating to a test versus England at Lord's last month.


Three of these gamers have stated 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 last week for six months for failing to report the unlawful method to him to throw frames.


There are likewise two other continuing investigations - 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 viewed as truthful, straight and fair that benefits wagering firms because individuals will invest cash betting with self-confidence," he states.


"If you take the Pakistan accusations, although unassociated to the UK regulated wagering market ... it is not really a positive story for wagering in the UK.


"That is because the understanding is that 'cricket is now something we might have to beware about'."


'Education'


So what can be done to avoid future scandals?


According to experts at a World Sports Law Report conference into sports betting, the focus has to be on sportsmen and sportswomen.


As Simon Taylor of the Professional Players' Federation points out: "The only individuals 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 Professional Footballers' Association.


He believes that it is insufficient to simply have deterrents, sanctions and disciplinary treatments, but that the way to deal with potential issues around players is also through education.


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


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


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


'Brand damage'


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


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


"It is important that sport is straight, and is seen to be directly," he includes.
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"If it loses that then individuals don't desire to wager, that is not in gambling firms' interests, and it is not in our interests."


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


FA rules suggest gamers are not enabled to bet on a competitors in which they are involved.


Mr Johnson says gamers have to be seen not to be cashing in on any inside knowledge, which he states might cause "brand name damage" to football and its competitions.


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


"We have to get over to gamers the reputational risk to the video game," he states. "Once confidence has been harmed it is difficult to get it back - mud sticks."


'Overwhelmingly legal'


If this represents the "carrot" approach, 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 regulate industrial gambling in Great Britain.


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


"The frustrating bulk of sports 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 unfaithful has the prospective to weaken the integrity of a sport, and it likewise hurts the industrial interests of sports betting bodies and sports betting."


The commission has actually established an in-house Sports Betting Intelligence Unit to receive and disseminate details to sporting authorities, wagering companies and policing authorities.


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


"We will notify sports betting of our concerns, to help avoid or reduce [prohibited] activity"


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


'Vulnerabilities'


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


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


He stated that where an investigation by a sport governing body was quicker, and more cost effective, then the commission would think about stopping a criminal investigation "in favour of letting sports governing bodies take the lead".
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Meanwhile, he says much of those looking to cheat the sports betting wagering market were knowledgeable about sports and sporting people, and about wagering operations and the movement of money.


"They look for the vulnerabilities of these to help in their enterprises."