Sport wagering market wants to secure itself
16 September 2010
By Bill Wilson
Business reporter, BBC News
sports betting on sport is substantial organization.
Sport England estimates 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 most likely to have grown further, with an approximated ₤ 1bn bet on the World Cup alone in the UK this summer.
Meanwhile, German research company Sport & Markt estimates the overall worldwide gaming 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 hit the sports betting industry suffers, and earnings are put under hazard if customers can not wager with self-confidence.
And there can have been few higher-profile sport wagering stories than those affecting cricket and snooker this year.
High-profile
As Sport & Markt's Gareth Moore observes: "Everyone speak about the sports betting gambling market now.
"Not only is it a substantial market in world service, it is one that is now on the front pages of newspapers."
Four Pakistan cricketers have actually been questioned by police over spot-fixing claims relating to a test against England at Lord's last month.
Three of these gamers have 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, but was banned recently for 6 months for failing to report the illegal technique 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 viewed as honest, straight and reasonable that is good for sports betting firms because individuals will spend cash sports betting with confidence," he says.
"If you take the Pakistan allegations, although unassociated to the UK managed wagering market ... it is not truly a favorable story for sports betting in the UK.
"That is since the perception is that 'cricket is now something we might have 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 sportsmen and sportswomen.
As Simon Taylor of the Professional Players' Federation explains: "The only people 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 player organisations, such as the Professional Footballers' Association.
He thinks that it is not adequate to simply have deterrents, sanctions and disciplinary treatments, but that the method to tackle possible issues around gamers is likewise through education.
Mr Taylor states rules require to be described plainly to players with clear examples, and by people they respect.
"Through educating gamers about sports betting you enhance integrity which is 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 regulatory legal suggestions at the Football Association, concurs.
"Prevention is much better than remedy, and we likewise make a point of informing players 'you are going to be caught'."
"It is essential that sport is straight, and is seen to be straight," he includes.
"If it loses that then people do not want to wager, that is not in sports betting companies' interests, and it is not in our interests."
He said that as soon as a good credibility was lost, the damage to a sport was "incalculable".
FA rules indicate gamers are not allowed to bank on a competition in which they are involved.
Mr Johnson states players need to be seen not to be cashing in on any inside understanding, which he states could cause "brand damage" to football and its competitions.
So, even a Second Division gamer knocked out of the FA Cup in the fall can not bank on a Manchester United v Chelsea cup last the following spring.
"We need to get over to players the reputational risk to the video game," he states. "Once self-confidence has been harmed it is tough to get it back - mud sticks."
'Overwhelmingly legal'
If this represents the "carrot" method, then perhaps Nick Tofiluk, director of guideline at the Gambling Commission, represents the "stick".
The Gambling Commission was set up under the Gambling Act 2005 to regulate business sports betting 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 majority of sports betting taking place through UK operators is legal and reasonable," he states.
"But for some there is the temptation to ... corruptly hinder the outcome of a sporting event.
"Such cheating has the potential to weaken the stability of a sport, and it likewise harms the commercial interests of sports betting bodies and sports betting wagering."
The commission has actually developed an internal Sports Betting Intelligence Unit to get and distribute info to sporting authorities, wagering firms and policing authorities.
"Since 2007 we have actually experienced a significant insight into world of corrupt sports betting," he says.
"We will notify sports betting of our issues, to assist prevent or cut [prohibited] 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 actually been just one prosecution, a 24-year-old male who was warned for cheating in relation to greyhound racing.
However, Mr Tofiluk says there are still 8 continuous investigations, which much helpful details has actually also been passed to sports betting authorities.
He said that where an examination by a sport governing body was quicker, and more cost effective, then the commission would consider discontinuing a criminal examination "in favour of letting sports betting governing bodies take the lead".
Meanwhile, he says a lot of those seeking to cheat the sports betting market were educated about sports betting and sporting individuals, and about wagering operations and the movement of cash.
"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
BLP
Gambling Commission
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