Sport Betting Industry Aims To Protect Itself
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Betting on sport is huge service.

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

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 summertime.

Meanwhile, German research firm Sport & Markt approximates the total worldwide gaming market will be worth 263bn euros (₤ 220bn) by 2012, with much of that driven by internet and sports gambling.

But when the integrity of events are hit the gambling market suffers, and profits are put under risk if customers can not bet with confidence.

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

High-profile

As Sport & Markt's Gareth Moore observes: "Everyone speak about the sports betting market now.

"Not only is it a substantial market in world business, it is one that is now on the front pages of papers."

Four Pakistan cricketers have been questioned by authorities over spot-fixing allegations relating to a test against England at Lord's last month.
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Three of these players have said they will likewise challenge the corruption charges installed against 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 banned last week for six months for stopping working to report the unlawful method to him to throw frames.

There are also two other continuing examinations - not associated to Mr Higgins - into snooker.

'Honest'

David O'Reilly is legal counsel for Betfair, one of the UK's greatest online sporting exchanges.

"If the sport is perceived as honest, straight and reasonable that is great for wagering firms because people will invest money wagering with self-confidence," he states.

"If you take the Pakistan claims, although unrelated to the UK controlled betting market ... it is not actually a favorable 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 professionals at a World Sports Law Report conference into sports betting, the focus needs to be on sportspersons and sportswomen.

As Simon Taylor of the Professional Players' Federation points out: "The only people who can fix a match are the rivals or the referee."

His organisation represents males and females in 15 sports in the UK, being an umbrella organisation for all gamer organisations, such as the Professional Footballers' Association.

He thinks that it is not sufficient to simply have deterrents, sanctions and disciplinary procedures, however that the way to tackle potential problems around players is also through education.

Mr Taylor states guidelines require to be discussed plainly to gamers with clear examples, and by people they respect.

"Through educating gamers about sports betting you strengthen stability which is in everybody'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, concurs.

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

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

"If it loses that then people do not wish to wager, that is not in gambling companies' interests, and it is not in our interests."

He stated that once a good track record was lost, the damage to a sport was "incalculable".

FA guidelines imply gamers are not allowed to bank on a competition in which they are involved.
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Mr Johnson says players need to be seen not to be capitalizing any inside knowledge, which he says could trigger "brand name damage" to football and its competitions.

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 need to overcome to players the reputational threat to the video game," he says. "Once self-confidence has actually been damaged it is difficult to get it back - mud sticks."

'Overwhelmingly legal'

If this represents the "carrot" method, then possibly Nick Tofiluk, director of regulation at the Gambling Commission, represents the "stick".

The Gambling Commission was set up under the Gambling Act 2005 to regulate commercial gambling in Great Britain.

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

"The overwhelming bulk of sports betting happening through UK operators is legal and reasonable," he states.

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

"Such cheating has the potential to weaken the integrity of a sport, and it also harms the industrial interests of sports betting bodies and sports wagering."

The commission has established an internal Sports Betting Intelligence Unit to get and share information to sporting authorities, betting companies and policing authorities.

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

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

In May 2010, the commission also introduced a private 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 guy who was warned for cheating in relation to greyhound racing.

However, Mr Tofiluk says there are still eight continuous investigations, which much useful details has actually also been passed to sports authorities.

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

Meanwhile, he states a lot of those looking to cheat the sports betting wagering industry were educated about sports and sporting people, and about betting operations and the movement of cash.

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