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Sport Betting Industry Seeks To Protect Itself
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Sport wagering industry seeks to secure itself

16 September 2010
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By Bill Wilson

Business reporter, BBC News

sports betting on sport is big company.

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.

Which figure is most likely to have actually 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 general global sports betting market will deserve 263bn euros (₤ 220bn) by 2012, with much of that driven by web and .

But when the stability of events are hit the gaming market suffers, and earnings are put under danger if clients can not bet 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 discuss the sports betting gambling market now.

"Not just is it a significant market in world company, it is one that is now on the front pages of papers."

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

Three of these gamers have actually stated they will also challenge the corruption charges mounted 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 accusations, but was banned last week for 6 months for failing to report the illegal method to him to toss frames.

There are also 2 other continuing examinations - not related to Mr Higgins - into snooker.

'Honest'

David O'Reilly is legal counsel for Betfair, one of the UK's biggest online sporting exchanges.
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"If the sport is perceived as sincere, straight and fair that benefits wagering firms due to the fact that people will invest money wagering with self-confidence," he says.

"If you take the Pakistan accusations, although unrelated to the UK controlled sports betting industry ... it is not actually a favorable story for sports betting in the UK.

"That is since the understanding is that 'cricket is now something we may need to be mindful about'."

'Education'

So what can be done to avoid future scandals?

According to specialists at a World sports betting Law Report conference into sports betting, the focus has to be on sportsmen and sportswomen.

As Simon Taylor of the Professional Players' Federation mentions: "The only people who can repair a match are the rivals 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 thinks that it is not sufficient to merely have deterrents, sanctions and disciplinary treatments, however that the method to tackle prospective issues around players is also through education.
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Mr Taylor says rules require to be described clearly to gamers with clear examples, and by people they respect.

"Through informing players about sports betting wagering you strengthen stability and that is in everybody's interest," he includes.

"If gamers are more difficult to corrupt then sport will be more difficult to corrupt."

'Brand damage'

Matt Johnson, head of regulative legal suggestions at the Football Association, agrees.

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

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

"If it loses that then individuals do not wish to bet, that is not in sports betting firms' interests, and it is not in our interests."

He stated that as soon as a great credibility was lost, the damage to a sport was "incalculable".

FA rules suggest players are not enabled to bank on a competition in which they are included.

Mr Johnson states players have to be seen not to be cashing in on any inside understanding, which he states could trigger "brand damage" to football and its competitions.

So, even a Second Division player knocked out of the FA Cup in the fall can not bet on a Manchester United v Chelsea cup last the following spring.

"We have to overcome to gamers the reputational danger to the video game," he says. "Once confidence has been harmed it is hard to get it back - mud sticks."

'Overwhelmingly legal'

If this represents the "carrot" approach, then maybe Nick Tofiluk, director of guideline at the Gambling Commission, represents the "stick".

The Gambling Commission was set up under the Gambling Act 2005 to manage industrial gaming in Great Britain.

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

"The frustrating majority of sports betting wagering happening through UK operators is legal and fair," he says.

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

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

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

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

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

In May 2010, the commission likewise presented a personal telephone hotline for those with info or suspicions.

'Vulnerabilities'

But in a two-and-a-half year duration there has been simply one criminal prosecution, a 24-year-old male who was warned for unfaithful in relation to greyhound racing.

However, Mr Tofiluk says there are still 8 continuous examinations, which much helpful information has likewise been passed to sports betting authorities.

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

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

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

Related internet 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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