Proposal aims to close a loophole created by the Labour government of 2005
The UK government is seeking feedback on plans to prevent unlicensed gambling operators from sponsoring sports clubs.
The government proposal aims to close a loophole which has allowed gambling operators who are not licensed in Great Britain to enter into sponsorship agreements with sports clubs.
Under the Gambling Act of 2005, which came into force in 2007, advertising unlicensed gambling in Great Britain is prohibited. However, the Act includes an exemption which allows online gambling operators in white-listed jurisdictions such as Gibraltar and the Isle of Man to continue to advertise.
This resulted in a surge in sport sponsorship by Asia-facing online gambling operators who use the English Premier League to promote their services to an international audience. It has also driven a backlash in Britain against what is seen as excessive gambling advertising in Football, even though many of the ads are for operators who do not serve the local market.
This advertising and sponsorship activity is also believed to be driving an increase in illegal gambling, with players in Britain able to easily access the promoted sites through the use of a VPN.
The Department for Culture, Media and Sport acknowledged on Wednesday that the current legislation undermines Britain’s gambling licensing objectives.
The proposed ban would target “any physical forms or manifestations of advertising or sponsorship”, which in a sporting context includes 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.
DCMS also plans to apply the ban to all sectors, as it seeks to avoid other sectors replacing sport as an alternative vehicle for unlicensed sponsorship.
If approved, the ban will come into force in August 2027, ahead of the start of the 2027/28 football season, although pre-existing contracts may be allowed to run until August 2028.
The government expects that the ban could have a negative financial impact on sports teams and clubs, as approximately 40 per cent of Premier League clubs had sponsorship or advertising deals with unlicensed gambling operators for the 2025/26 season.
The eight-week consultation opened on 15 July and closes on 9 September.