The UK government is working on new strategies to prevent unlicensed gambling operators from being able to sponsor UK sports. The concern arises from claims that the government left it too late to regulate the matter, allowing overseas gaming companies to obtain important football sponsorships.
The Department for Culture, Media and Sport (DCMS) is set to initiate a discussion about the issue after plans to consider sponsorship regulations fell through earlier this year.
The current step comes after Everton Football Club signed a sleeve sponsorship deal with crypto gambling company Stake.com for three years, even if the UK Gambling Commission issued warnings about the agreement.
Entain’s CEO Stella David previously called on Baroness Twycross, Minister for Gambling, to act quickly and warned that time passing would allow new sponsorship contracts to be signed.
A government spokesperson said:
It’s not right that unlicensed gambling operators can sponsor some of our biggest football clubs, raising their profile and potentially drawing fans towards sites that don’t meet our regulatory standards. That is why we are looking to ban unlicensed operators from sponsorship deals in British sport and our consultation on the matter will go live soon.
The topic became topical since the PL clubs have stopped having gambling sponsors on their shirts due to the voluntary agreement between PL clubs and the government, but sleeve, training, and stadium sponsorships are still allowed.
Stake sort of have a history with UK football sponsorship but exited the UK market after its partner TGP Europe surrendered its licence in the wake of an investigation by the Gambling Commission.
The discussion comes amid concerns over offshore gambling companies, with regulators claiming unlicensed companies can escape UK consumer protection regulations, responsible gambling requirements, and some tax responsibilities.
