New MA Sports Betting Proposal Contains Significant Tax Boost and Prohibition on Real-Time Betting

Sport Betting Industry Aims To Protect Itself

Betting on sport is huge business.

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.

And that figure is 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 approximates the total worldwide gambling market will deserve 263bn euros (₤ 220bn) by 2012, with much of that driven by web and sports betting.

But when the integrity of events are hit the gambling industry suffers, and profits are put under hazard if consumers can not wager with self-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 speak about the sports gambling market now.

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

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

Three of these gamers have actually stated they will likewise challenge the corruption charges installed against 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, but was prohibited recently for 6 months for stopping working to report the prohibited approach to him to toss frames.

There are likewise 2 other continuing examinations – unrelated 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 perceived as truthful, straight and reasonable that benefits wagering firms since individuals will invest money wagering with confidence,” he states.

“If you take the Pakistan accusations, although unassociated to the UK regulated betting industry … it is not really a favorable story for betting 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 Law Report conference into sports gambling, the focus has to be on sportsmen and sportswomen.

As Simon Taylor of the Professional Players’ Federation points out: “The only people who can fix a match are the competitors or the referee.”

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

He thinks that it is insufficient to merely have deterrents, sanctions and disciplinary treatments, but that the method to deal with possible problems around players is also through education.

Mr Taylor states guidelines need to be discussed clearly to players with clear examples, and by individuals they respect.

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

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

‘Brand damage’

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

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

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

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

He said that as soon as a good track record was lost, the damage to a sport was “incalculable”.

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

Mr Johnson states gamers have to be seen not to be capitalizing any inside knowledge, which he says could trigger “brand damage” to football and its competitors.

So, even a Second Division gamer 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 risk to the video game,” he states. “Once confidence has been damaged it is tough to get it back – mud sticks.”

‘Overwhelmingly legal’

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

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

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

“The overwhelming bulk of sports betting taking place through UK operators is legal and fair,” he states.

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

“Such unfaithful has the prospective to weaken the integrity of a sport, and it also hurts the commercial interests of sports betting bodies and sports betting.”

The commission has developed an in-house Sports Betting Intelligence Unit to get and share information to sporting authorities, wagering firms and policing authorities.

“Since 2007 we have actually experienced a significant insight into world of corrupt sports betting,” he states.

“We will inform sports of our concerns, to assist prevent or curtail [prohibited] 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 period there has been simply one criminal prosecution, a 24-year-old man who was cautioned for cheating in relation to greyhound racing.

However, Mr Tofiluk states there are still eight continuous examinations, which much useful details has actually also been passed to sports authorities.

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

Meanwhile, he states many of those aiming to cheat the sports betting market were knowledgeable about sports and sporting people, and about wagering operations and the movement of cash.

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