Cover the Bases: Sports Betting News and Notes from the Past Week

    Overview

    • Sectors FinTech

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    Sport Betting Industry Seeks To Protect Itself

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    Betting on sport is big company.

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    Sport England approximates the worth 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 even more, with an approximated ₤ 1bn bet on the World Cup alone in the UK this summer season.

    Meanwhile, German research company Sport & Markt estimates the overall global betting market will be worth 263bn euros (₤ 220bn) by 2012, with much of that driven by internet and sports betting gaming.

    But when the integrity of events are hit the betting market suffers, and incomes are put under hazard if consumers can not wager with self-confidence.

    And there can have been couple of higher-profile sport betting stories than those affecting 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 significant market in world organization, it is one that is now on the front pages of newspapers.”

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

    Three of these players have actually 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 champ John Higgins was cleared of match-fixing claims, however was prohibited recently for six months for failing to report the illegal method to him to throw frames.

    There are also two other continuing investigations – not related to Mr Higgins – into snooker.

    ‘Honest’

    David O’Reilly is legal counsel for Betfair, among the UK’s biggest online sporting exchanges.

    “If the sport is viewed as truthful, straight and reasonable that is good for wagering companies since people will spend cash wagering with confidence,” he states.

    “If you take the Pakistan claims, although unrelated to the UK regulated wagering 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 be careful about’.”

    ‘Education’

    So what can be done to avoid future scandals?

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

    As Simon Taylor of the Professional Players’ Federation mentions: “The only individuals who can repair a match are the competitors or the referee.”

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

    He believes that it is insufficient to simply have deterrents, sanctions and disciplinary procedures, however that the way to deal with possible problems around players is likewise through education.

    Mr Taylor states rules need to be explained plainly to gamers with clear examples, and by individuals they appreciate.

    “Through educating players about sports betting you strengthen stability and that remains in everybody’s interest,” he includes.

    “If players are harder to corrupt then sport will be more difficult to corrupt.”

    ‘Brand damage’

    Matt Johnson, head of regulatory legal recommendations at the Football Association, agrees.

    “Prevention is much better than treatment, and we likewise make a point of informing gamers ‘you are going to be caught’.”

    “It is crucial that sport is straight, and is seen to be straight,” he includes.

    “If it loses that then individuals don’t desire to bet, that is not in betting companies’ interests, and it is not in our interests.”

    He said that once a good reputation was lost, the damage to a sport was “enormous”.

    FA rules indicate gamers are not enabled to bank on a competitors in which they are included.

    Mr Johnson says gamers have actually to be seen not to be cashing in on any inside knowledge, which he says could cause “brand name damage” to football and its competitors.

    So, even a Second Division player 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 get over to gamers the reputational danger to the video game,” he says. “Once confidence has actually been damaged it is tough to get it back – mud sticks.”

    ‘Overwhelmingly legal’

    If this represents the “carrot” method, then maybe Nick Tofiluk, director of policy at the Gambling Commission, represents the “stick”.

    The Gambling Commission was established under the Gambling Act 2005 to manage industrial betting in Great Britain.

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

    “The overwhelming bulk of sports betting occurring through UK operators is legal and fair,” he says.

    “But for some there is the temptation to … corruptly disrupt the outcome of a sporting event.

    “Such cheating has the possible to undermine the stability of a sport, and it also damages the industrial interests of sports bodies and sports .”

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

    “Since 2007 we have experienced a substantial insight into world of corrupt sports wagering,” he says.

    “We will inform sports of our concerns, to help prevent or cut [illegal] activity”

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

    ‘Vulnerabilities’

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

    However, Mr Tofiluk says there are still eight continuous investigations, and that much useful details has likewise been passed to sports betting authorities.

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

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    Meanwhile, he states numerous of those wanting to cheat the sports wagering market were well-informed about sports and sporting people, and about betting operations and the motion of money.

    “They look for the vulnerabilities of these to help in their enterprises.”