Sport Betting Industry Aims To Protect Itself

Register at Bet9ja using the promotion code YOHAIG for a N100,000 welcome bonus

Sport sports betting industry aims to protect itself

16 September 2010

By Bill Wilson

Business reporter, BBC News

sports betting on sport is huge company.

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

And that figure is likely to have grown further, 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 global gaming market will deserve 263bn euros (₤ 220bn) by 2012, with much of that driven by web and sports betting.

But when the stability of events are struck the betting industry suffers, and earnings are put under hazard if clients can not bet with confidence.

And there can have been couple of 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 market now.

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

Four Pakistan cricketers have actually been questioned by cops over spot-fixing claims associating with a test versus England at Lord's last month.

Three of these players have stated they will likewise challenge the corruption charges installed 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 claims, but was banned recently for six months for stopping working to report the unlawful approach to him to throw 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 biggest online sporting exchanges.

"If the sport is viewed as truthful, straight and reasonable that benefits wagering firms because people will invest money betting with self-confidence," he states.

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

"That is due to the fact that the understanding is that 'cricket is now something we may 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 gambling, the focus has to be on sportspersons and sportswomen.

As Simon Taylor of the Professional Players' Federation mentions: "The only individuals who can fix a match are the competitors or the referee."

His organisation represents guys and women 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 simply have deterrents, sanctions and disciplinary treatments, but that the method to take on potential problems around gamers is likewise through education.

Mr Taylor states rules need to be discussed clearly to players with clear examples, and by people they appreciate.

"Through educating gamers about sports betting wagering you enhance integrity which remains in everybody's interest," he adds.

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

'Brand damage'

Matt Johnson, head of regulatory legal advice at the Football Association, concurs.

"Prevention is better than remedy, and we likewise make a point of informing players 'you are going to be caught'."

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

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

He stated that when an excellent credibility was lost, the damage to a sport was "enormous".

FA rules mean players are not permitted to bank on a competition in which they are included.

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

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

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

'Overwhelmingly legal'

If this represents the "carrot" approach, 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 control commercial 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 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 disrupt the result of a sporting event.

"Such cheating has the potential to weaken the stability of a sport, and it likewise hurts the commercial interests of sports betting bodies and sports betting wagering."

The commission has established an in-house Sports Betting Intelligence Unit to receive and distribute info to sporting authorities, sports betting firms and policing authorities.

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

"We will alert sports betting of our issues, to help avoid or reduce [illegal] activity"

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

'Vulnerabilities'

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

However, Mr Tofiluk says there are still eight continuous investigations, and that much beneficial info has also been passed to sports betting authorities.

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

Meanwhile, he says a lot of those wanting to cheat the sports betting market were educated about sports betting and sporting individuals, and about sports betting operations and the movement of money.

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