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Sport sports betting market seeks to secure itself
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16 September 2010
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By Bill Wilson

Business reporter, BBC News

sports betting on sport is substantial business.

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

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

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

But when the integrity of events are struck the gambling market suffers, and profits are put under risk if clients can not wager with self-confidence.

And there can have been few higher-profile sport wagering 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 considerable market in world business, it is one that is now on the front pages of newspapers."

Four Pakistan cricketers have been questioned by authorities over spot-fixing accusations connecting to a test against England at Lord's last month.

Three of these players have stated they will likewise challenge the corruption charges mounted 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 claims, however was prohibited last week for six months for failing to report the unlawful technique to him to toss frames.

There are likewise two other continuing investigations - not associated 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 honest, straight and reasonable that is excellent for sports betting companies because people will invest money sports betting with self-confidence," he says.
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"If you take the Pakistan claims, although unrelated to the UK regulated sports betting market ... it is not truly a positive story for wagering 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 avoid 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.
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As Simon Taylor of the Professional Players' Federation points out: "The only individuals who can fix 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 inadequate to simply have deterrents, sanctions and disciplinary treatments, but that the method to deal with prospective problems around players is likewise through education.

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

"Through informing players about sports betting you enhance integrity and that is 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 recommendations at the Football Association, agrees.

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

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

"If it loses that then individuals don't desire to wager, that is not in gaming companies' interests, and it is not in our interests."

He said that once a good credibility was lost, the damage to a sport was "enormous".

FA guidelines indicate gamers are not allowed to bank on a competition in which they are involved.

Mr Johnson says have to be seen not to be capitalizing any inside understanding, which he states might cause "brand name damage" to football and its competitors.

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

"We have to overcome to players the reputational risk to the video 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" method, then perhaps Nick Tofiluk, director of regulation at the Gambling Commission, represents the "stick".

The Gambling Commission was established under the Gambling Act 2005 to control commercial gaming in Great Britain.

An ex-chief constable of West Midlands authorities, 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 wagering happening through UK operators is legal and fair," he says.

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

"Such unfaithful has the possible to undermine the stability of a sport, and it also damages the commercial interests of sports betting bodies and sports betting."

The commission has established an in-house Sports Betting Intelligence Unit to get and distribute information to sporting authorities, sports betting companies and policing authorities.

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

"We will notify sports betting of our issues, to assist prevent or cut [unlawful] activity"

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

'Vulnerabilities'

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

However, Mr Tofiluk says there are still 8 continuous investigations, which much useful details has actually likewise 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 think about ceasing a criminal investigation "in favour of letting sports betting governing bodies take the lead".

Meanwhile, he states a lot of those seeking to cheat the sports betting industry were well-informed about sports betting and sporting individuals, and about wagering operations and the motion of money.

"They look for out the vulnerabilities of these to assist in their business."

Related web links

World sports betting Law Report

ICC

Professional Players Federation

Professional Footballers' Association

The FA

Betfair

Sport & Markt
bit.ly
BLP

Gambling Commission