The UK Department for Culture, Media and Sport (DCMS) has initiated an eight-week consultation regarding a potential ban on sports sponsorship by unlicensed gambling operators. The proposal aims to introduce secondary legislation that would classify these agreements as criminal offenses.
The consultation addresses concerns raised by licensed firms, such as Entain, regarding competition from unregulated entities. The issue has gained prominence in English football following the departure of TGP Europe from the British market after a £3.3m penalty. For the upcoming season, the Premier League is implementing a voluntary ban on front-of-shirt gambling logos, though logos may remain on sleeves, as seen with Everton’s renewed deal with Stake.
Legislative Measures and Scope
The proposed legislation seeks to prohibit sports bodies from entering sponsorship agreements with providers lacking a British Gambling Commission license. The DCMS cites player protection, market integrity, and money-laundering reduction as primary justifications. Under the new rules, violations could result in daily financial penalties.
White-label agreements currently complying with existing codes are exempt from this initial proposal.
The consultation primarily targets in-stadium advertising, while Ofcom will address broadcast promotions separately. Regulators have previously relied on geo-blocking to manage unlicensed operators, but stakeholders argue this method is insufficient due to the widespread use of VPNs by fans.