New Massachusetts Sports Betting Legislation Contains Significant Tax Boost & Prohibition on Real-Time Betting

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Sport Betting Industry Looks To Protect Itself

Betting on sport is substantial company.

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

And that figure is most likely to have grown further, with an estimated ₤ 1bn bet on the World Cup alone in the UK this summer season.

Meanwhile, German research company Sport & Markt estimates the overall international gaming 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 earnings are put under risk if clients can not bet with 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 speak about the sports betting market now.

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

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

Three of these players have actually said they will likewise challenge the corruption charges mounted against 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, however was prohibited last week for six months for stopping working to report the illegal method to him to throw frames.

There are also 2 other continuing investigations – unrelated to Mr Higgins – into snooker.

‘Honest’

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

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“If the sport is perceived as sincere, straight and fair that benefits betting companies because individuals will spend money wagering with self-confidence,” he says.

“If you take the Pakistan accusations, although unrelated to the UK controlled betting industry … it is not truly a favorable story for betting in the UK.

“That is due to the fact that the perception 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 experts at a World sports betting Law Report conference into sports betting 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 rivals or the referee.”

His organisation represents men and ladies 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 not enough to simply have deterrents, sanctions and disciplinary treatments, however that the method to tackle potential issues around players is likewise through education.

Mr Taylor says guidelines require to be explained clearly to gamers with clear examples, and by individuals they respect.

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

“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, concurs.

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

“It is essential that sport is straight, and is seen to be straight,” he adds.

“If it loses that then individuals do not want to bet, that is not in gambling firms’ interests, and it is not in our interests.”

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He said that as soon as an excellent credibility was lost, the damage to a sport was “incalculable”.

FA guidelines indicate gamers are not allowed to wager on a competitors in which they are involved.

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

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

“We need to overcome to gamers the reputational threat to the video game,” he says. “Once confidence has actually been harmed it is tough to get it back – mud sticks.”

‘Overwhelmingly legal’

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

The Gambling Commission was set up under the Gambling Act 2005 to regulate business betting in Great Britain.

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

“The overwhelming majority of sports wagering occurring through UK operators is legal and fair,” he states.

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

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

The commission has established an in-house Sports Betting Intelligence Unit to receive and disseminate details to sporting authorities, wagering companies and policing authorities.

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

“We will notify sports of our concerns, to help avoid or curtail [prohibited] activity”

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

‘Vulnerabilities’

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

However, Mr Tofiluk states there are still 8 continuous investigations, and that much helpful info has likewise been passed to sports authorities.

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

Meanwhile, he says many of those wanting to cheat the sports betting wagering industry were well-informed about sports and sporting people, and about wagering operations and the movement of money.

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