The UK Department for Culture, Media and Sport (DCMS) has announced a plan to ban sport sponsorship by unlicensed online gambling operators.
The proposal to ban unlicensed operators from sponsoring sports clubs forms part of the UK Government’s wider measures to tackle the growing illegal gambling market.
The UK Gambling Act of 2005, which came into force in 2007, made it offence to advertise gambling in Great Britain without a licence from the UK Gambling Commission.
However, the Act included an exemption which allowed online gambling operators in white-listed jurisdictions such as Gibraltar and the Isle of Man to continue to advertise in Great Britain.
This exemption led to a surge in sport sponsorship by Asia-facing online gambling operators who used the English Premier League to promote their services to an international audience.
The DCMS said on Monday that ministers are “deeply concerned about the dangers posed by the unlicensed gambling market”, which has grown due to the ever-tighter restriction imposed on Britain’s licensed gambling operators.
“When placing a bet on the big match, fans deserve to know the sites they’re using are properly regulated, with the right protections in place,” said Culture Secretary Lisa Nandy. “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.”
The proposed measures would mean gambling companies without a UK licence would be banned from entering into any sponsorship arrangements with sports clubs, including in the Premier League.
Premier League football clubs voted in favour of removing gambling advertising from the front of matchday shirts in April 2023, with the voluntary ban coming into force at the end of the current season.
The DCMS will launch a public consultation on the proposed ban on sport sponsorship in the Spring.
Gambling Minister Baroness Twycross said: “We know the real harm that unregulated gambling can cause, exploiting vulnerable people and leaving consumers without the protections they deserve.
“This consultation, alongside the work of our Illegal Gambling Taskforce, shows how seriously this government is taking the issue. We will not hesitate to act where we see people being put at risk.”
Last month, the government launched an Illegal Gambling Taskforce which aims to strengthen the legal market by preventing illegal gambling advertising on social media platforms, as well as payments to unlicensed online gambling sites.