UK opens consultation to ban unlicensed gambling sponsorships
The government of the United Kingdom has announced that it has opened a consultation on banning unlicensed gambling sponsorships, as it said that it wants to change legislation to protect consumers, defend the integrity of the domestic market, and eliminate money laundering vulnerabilities within sport, particularly football.
Potential ban on unlicensed gambling sponsorships could extend beyond sport
In its announcement of the consultation, the government stated that it is permitted under current legislation for businesses to enter into advertising and sponsorship arrangements with gambling operators which are not licensed by the UK Gambling Commission, “so long as those operators’ services cannot be accessed by consumers in Great Britain”.
It continued that such unlicensed operators prevent access to their services by geo-blocking their websites, but this form of blocking can be circumvented by consumers making use of a virtual private network (VPN).
With that in mind, the government said that it wants to change the current legislation, which it commented “undermines the gambling licensing and advertising regulatory frameworks, which aim to protect consumers in Great Britain and reduce the risk of money-laundering and crime”.
It said that it is therefore consulting on legislative changes to ban unlicensed gambling sponsorships and advertising in Great Britain across all sectors, including sport.
“The ban will target any physical forms or manifestations of advertising or sponsorship. Within a sporting context, this will include kit and equipment sponsorships, pitch side billboards, tournament programmes, venue infrastructure, and the naming of events, leagues and venues. This will make it a criminal offence for any club, league, event, venue, individual or related assets to advertise or be sponsored by a gambling operator not licensed by the Gambling Commission when operating in Great Britain. We also intend to apply this ban to all sectors, to avoid other sectors replacing sport as an alternative vehicle for unlicensed sponsorship,” the government stated.
The government commented that while it believes that most sectors and sports will be unaffected by the potential ban, some sports or clubs will be impacted.
An example of this may be seen in the case of Premier League side Everton Football Club, as it recently signed an agreement with Stake which would see the Stake brand feature on the sleeves of the club’s matchday football kits. This new agreement itself was a change from a prior agreement where Stake’s brand had featured on the front of the club’s kits, with the alteration being made due to a ban on matchday front-of-shirt betting sponsorships.
The government stated that it wants to introduce the ban “as quickly as possible,” as it indicated that it would prefer to implement the ban from a fixed date in August 2027, meaning that it would come into force ahead of the 2027/28 football season.
Reactions from within the UK gambling industry
In reaction to the consultation being opened, the Betting and Gaming Council (BGC) stated that it “welcomes the government’s consultation on proposals to ban sponsorship and advertising arrangements involving gambling operators that are not licensed by the Gambling Commission”.
The BGC remarked that unlicensed operators should not be able to use British sport in order to promote illegal gambling to UK consumers, as it commented that such operators do not operate within the parameters of the British regulatory framework, meaning that they also do not offer the consumer protections required of licensed operators and therefore put customers at unnecessary risk.
“As the harmful black market continues to grow, it is right that the government is taking action to stop illegal operators using sponsorship and advertising to gain credibility and target British consumers,” the BGC stated.
It continued that the government should act without delay in order to protect consumers, adding that it looks forward to supporting robust measures which strengthen the regulated market.
Entain, a major operator in the UK market, also expressed support for the government consultation. Furthermore, Entain called for “an immediate ban” on unlicensed gambling sponsorships.
In a statement discussing the government’s consultation, Entain stated that swift action should be taken “to close loopholes that continue to allow illegal operators to use British sport as a marketing platform”.
It continued that the consultation is a reflection of the government’s recognition that sponsorship by unlicensed operators creates risk for consumers, sport, and the integrity of regulated markets.
Stella David, Chief Executive of Entain, said that the consultation “represents another important step forward in tackling illegal gambling,” as she added that “unlicensed gambling operators are often little more than fronts for organised crime”. David remarked that unlicensed operators target vulnerable consumers, pay no tax in the UK, and ignore safeguards that licensed operators are required to provide.
The Entain CEO called for clubs, leagues, and governing bodies to “act immediately and voluntarily end relationships with unlicensed operators rather than wait for legislation to compel them to do so”.
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