Sport wagering market aims to safeguard itself
16 September 2010
By Bill Wilson
Business press reporter, BBC News
sports betting on sport is big business.
Sport England approximates the value of spending on sport-related gambling in England grew from ₤ 1.7 bn in 1985 to ₤ 2.8 bn in 2008.
Which figure is likely to have actually grown further, with an approximated ₤ 1bn bet on the World Cup alone in the UK this summer season.
Meanwhile, German research study company Sport & Markt estimates the overall global gambling market will be worth 263bn euros (₤ 220bn) by 2012, with much of that driven by internet and sports betting gambling.
But when the integrity of events are struck the sports betting market suffers, and earnings are put under risk if customers can not wager with confidence.
And there can have been few higher-profile sport sports betting 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 only is it a considerable market in world business, it is one that is now on the front pages of papers."
Four Pakistan cricketers have been questioned by police over spot-fixing claims relating to a test against England at Lord's last month.
Three of these players have actually stated 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 champion John Higgins was cleared of match-fixing accusations, however was prohibited last week for 6 months for stopping working to report the illegal method to him to throw frames.
There are likewise 2 other continuing examinations - not associated to Mr Higgins - into snooker.
'Honest'
David O'Reilly is legal counsel for Betfair, among the UK's greatest online sporting exchanges.
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"If the sport is viewed as honest, straight and fair that benefits sports betting firms since individuals will invest money sports betting with confidence," he says.
"If you take the Pakistan accusations, although unassociated 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 might need to be cautious about'."
'Education'
So what can be done to prevent future scandals?
According to specialists at a World sports betting Law Report conference into sports betting, the focus needs to be on sportsmen and sportswomen.
As Simon Taylor of the Professional Players' Federation points out: "The only people who can fix a match are the competitors or the referee."
His organisation represents men and ladies 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 merely have deterrents, sanctions and disciplinary treatments, but that the method to tackle possible concerns around players is also through education.
Mr Taylor states guidelines need to be discussed plainly to gamers with clear examples, and by individuals they appreciate.
"Through educating players about sports betting wagering you reinforce integrity which remains in everyone's interest," he adds.
"If gamers are more difficult to corrupt then sport will be more difficult to corrupt."
'Brand damage'
Matt Johnson, head of regulative legal recommendations at the Football Association, agrees.
"Prevention is better than cure, and we likewise make a point of informing players 'you are going to be caught'."
"It is imperative that sport is directly, and is seen to be directly," he includes.
"If it loses that then people do not want to wager, that is not in gambling firms' interests, and it is not in our interests."
He said that as soon as a great reputation was lost, the damage to a sport was "enormous".
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FA guidelines indicate players are not allowed to bank on a competitors in which they are involved.
Mr states players need to be seen not to be cashing in on any inside knowledge, which he states might cause "brand damage" to football and its competitors.
So, even a Second Division gamer knocked out of the FA Cup in the autumn can not bank on a Manchester United v Chelsea cup last the following spring.
"We have to overcome to players the reputational threat to the game," he states. "Once confidence has been damaged it is tough to get it back - mud sticks."
'Overwhelmingly legal'
If this represents the "carrot" method, then maybe Nick Tofiluk, director of policy at the Gambling Commission, represents the "stick".
The Gambling Commission was set up under the Gambling Act 2005 to manage business gambling in Great Britain.
An ex-chief constable of West Midlands authorities, Mr Tofiluk has responsibility for policing all sports betting in the UK apart from spread sports betting, which is the remit of the FSA.
"The overwhelming majority of sports betting occurring through UK operators is legal and reasonable," he states.
"But for some there is the temptation to ... corruptly hinder the result of a sporting event.
"Such unfaithful has the potential to weaken the integrity of a sport, and it likewise harms the commercial interests of sports betting bodies and sports betting."
The commission has developed an in-house Sports Betting Intelligence Unit to receive and disseminate details to sporting authorities, sports betting companies and policing authorities.
"Since 2007 we have actually experienced a substantial insight into world of corrupt sports betting," he says.
"We will alert sports betting of our issues, to help avoid or cut [illegal] activity"
In May 2010, the commission likewise introduced a personal telephone hotline for those with info or suspicions.
'Vulnerabilities'
But in a two-and-a-half year period there has been simply one prosecution, a 24-year-old man who was cautioned for unfaithful in relation to greyhound racing.
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However, Mr Tofiluk states there are still 8 continuous investigations, and that much useful details has likewise been passed to sports betting authorities.
He said that where an investigation by a sport governing body was quicker, and more expense efficient, then the commission would consider ceasing a criminal investigation "in favour of letting sports betting governing bodies take the lead".
Meanwhile, he states a number of those aiming to cheat the sports betting market were experienced about sports betting and sporting people, and about wagering operations and the motion of cash.
"They seek out the vulnerabilities of these to assist in their enterprises."
Related internet links
World sports betting Law Report
ICC
Professional Players Federation
Professional Footballers' Association
The FA
Betfair
Sport & Markt
bit.ly
BLP
Gambling Commission
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Sport Betting Industry Looks To Protect Itself
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