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Sport sports betting industry looks to safeguard itself

16 September 2010

By Bill Wilson

Business press reporter, BBC News

Betting on sport is big service.

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

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

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

But when the stability of occasions are struck the sports betting industry suffers, and incomes are put under risk if consumers can not bet with 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 speak about the sports betting gambling market now.
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"Not only is it a considerable market in world company, it is one that is now on the front pages of papers."

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

Three of these gamers have actually said they will also 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 allegations, however was banned last week for 6 months for failing to report the illegal method to him to toss frames.

There are likewise two other continuing investigations - 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 perceived as honest, straight and reasonable that benefits sports betting firms since individuals will spend money wagering with self-confidence," he states.

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

"That is due to the fact that the understanding is that 'cricket is now something we might need to take care 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 has to be on sportspersons and sportswomen.

As Simon Taylor of the Professional Players' Federation explains: "The only individuals who can repair a match are the rivals or the referee."

His organisation represents guys 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 inadequate to merely have deterrents, sanctions and disciplinary treatments, but that the method to take on possible problems around gamers is likewise through education.

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

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

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

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

"Prevention is better than treatment, and we also make a point of informing players 'you are going to be caught'."

"It is necessary that sport is straight, and is seen to be straight," he includes.
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"If it loses that then people do not wish to bet, that is not in betting companies' interests, and it is not in our interests."

He stated that when a good credibility was lost, the damage to a sport was "enormous".

FA guidelines mean gamers are not permitted to wager on a competitors in which they are involved.

Mr Johnson states gamers have actually to be seen not to be capitalizing any inside knowledge, which he states could cause "brand name damage" to football and its competitors.

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

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

'Overwhelmingly legal'

If this represents the "carrot" technique, then maybe 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 gaming in Great Britain.
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An ex-chief constable of West Midlands authorities, Mr Tofiluk has obligation for policing all wagering 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 reasonable," he states.

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

"Such cheating has the possible to weaken the stability of a sport, and it likewise harms the business interests of sports betting bodies and sports betting."

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

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

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

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

'Vulnerabilities'

But in a two-and-a-half year period there has been just one prosecution, a 24-year-old male who was warned for unfaithful in relation to greyhound racing.
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However, Mr Tofiluk states there are still 8 ongoing investigations, which much beneficial info has also been passed to sports betting authorities.

He stated that where an examination by a sport governing body was quicker, and more expense efficient, then the commission would consider stopping a criminal investigation "in favour of letting sports betting governing bodies take the lead".

Meanwhile, he says much of those seeking to cheat the sports betting market were knowledgeable 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."
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Related internet links

World sports betting Law Report

ICC

Professional Players Federation

Professional Footballers' Association

The FA

Betfair

Sport & Markt

BLP

Gambling Commission