UK opens consultation on proposal to ban unlicensed gambling sponsorship in sport
Secondary legislation could make entering sponsorship deals with unlicensed gambling operators a criminal offence in the UK.
UK.- The UK government’s Department for Culture, Media and Sport (DCMS) has launched its consultation on a proposed ban on unlicensed gambling sponsorship of sports. Initially slated for the spring, the eight-week consultation comes amid calls from licensed operators for more measures against unlicensed competition.
The consultation seeks opinions on a proposal to ban sports clubs from entering into sponsorship deals with gambling operators that are not licensed by the British Gambling Commission. Such deals have been particularly visible in English football and received increased scrutiny after the white-label gambling operator TGP Europe pulled out of the British market after being ordered to pay a £3.3m penalty by the Gambling Commission.
For the coming season, the Premier League is commencing a voluntary ban on all front-of-shirt gambling sponsorships irrespective of whether they are licensed in Britain. However, gambling logos can still appear in other locations. For example, Everton last month renewed its sponsorship deal with Stake, whose British licence was cancelled early last year. It merely shifted the online casino operator’s logo from the front of shirts to the sleeve.
This has led Gambling Commission-licensed firms – most notably Entain – to campaign for a change under their own stream.
Regulators and football authorities have attempted to handle unlicensed gambling sponsorship by requiring firms to geo-block British users. However, it’s argued that the safeguard is ineffective as fans can easily bypass restrictions using VPNs, which have become more widely used.
What’s in the DCMS gambling sponsorship consultation?
The consultation proposes a measure “to ban anyone, including sports clubs and bodies, from entering into a sponsorship or advertising agreement with a gambling provider that is not licensed by the Gambling Commission.” It highlights three main grounds: player protection, safeguarding the integrity of the licensed gambling market, and reducing money-laundering risks.
To achieve the ban, secondary legislation is being considered. This would empower the Secretary of State to regulate gambling advertising, subject to Parliamentary approval. Under such rules, partnering with an unlicensed operator could become a criminal offence, with daily financial penalties for violations.
White label agreements that comply with the Gambling Commission’s Licence Conditions and Codes of Practice (LCCP) would not be affected at this stage, though further discussions between the Commission and DCMS may revisit the issue.
The consultation’s primary emphasis is on in-stadium advertising rather than online sponsorships. Collaboration with Ofcom is expected to address the issue of illegal gambling promotions during television and radio broadcasts separately.
Stakeholders are invited to provide evidence and feedback on how a ban might impact the financial sustainability of clubs and leagues, as well as potential unintended consequences. Responses will be accepted until September 9 with feedback to be evaluated before any legislation is presented to Parliament.
