Recent Massachusetts Sports Betting Proposal Includes Massive Tax Increase and Prohibition on Real-Time Betting

Sport Betting Industry Aims To Protect Itself

Betting on sport is huge business.

Sport England approximates the value of spending on sport-related gaming 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 approximated ₤ 1bn bet on the World Cup alone in the UK this summer season.

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

But when the stability of events are struck the gambling market suffers, and incomes are put under danger if clients can not wager with 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 gambling market now.

“Not just is it a considerable market in world organization, it is one that is now on the front pages of newspapers.”

Four Pakistan cricketers have been questioned by authorities over spot-fixing accusations associating with a test against England at Lord’s last month.

Three of these players have actually said they will likewise challenge the corruption charges mounted 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 allegations, but was banned recently for 6 months for stopping working to report the prohibited method to him to toss frames.

There are likewise 2 other continuing investigations – 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 sincere, straight and fair that benefits betting companies because people will invest cash wagering with confidence,” he states.

“If you take the Pakistan allegations, although unassociated to the UK controlled betting market … it is not actually a positive story for wagering in the UK.

“That is because the understanding is that ‘cricket is now something we might have to be mindful about’.”

‘Education’

So what can be done to avoid future scandals?

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

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

His organisation represents guys 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 inadequate to simply have deterrents, sanctions and disciplinary procedures, but that the way to deal with potential concerns around gamers is likewise through education.

Mr Taylor says guidelines need to be discussed clearly to gamers with clear examples, and by individuals they appreciate.

“Through informing gamers about sports betting you enhance stability and that remains in everybody’s interest,” he adds.

“If players 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 also make a point of telling players ‘you are going to be caught’.”

“It is necessary that sport is directly, and is seen to be directly,” he adds.

“If it loses that then people do not wish to wager, that is not in betting firms’ interests, and it is not in our interests.”

He stated that as soon as an excellent reputation was lost, the damage to a sport was “enormous”.

FA rules imply players are not permitted to bank on a competitors in which they are included.

Mr Johnson states players need to be seen not to be cashing in on any inside knowledge, which he says could trigger “brand name damage” to football and its competitions.

So, even a Second 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 need to overcome to players 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 regulate industrial gaming in Great Britain.

An ex-chief constable of West Midlands authorities, Mr Tofiluk has obligation for policing all wagering 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 says.

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

“Such cheating has the prospective to weaken the of a sport, and it likewise damages the business interests of sports bodies and sports betting.”

The commission has established an internal Sports Betting Intelligence Unit to receive and disseminate info to sporting authorities, wagering firms and policing authorities.

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

“We will alert sports of our issues, to assist prevent or reduce [illegal] activity”

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

‘Vulnerabilities’

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

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

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

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

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