UK Government To Ban Unlicensed Gambling Companies From Sponsoring Sports Teams

The UK government has announced that it will ban unlicensed gambling companies from sponsoring sports teams. The move comes as the country aims to create tougher rules to combat illegal gambling in the UK.

Currently, several Premier League clubs are sponsored by gambling companies that do not hold UK licenses. For example, Everton is sponsored by crypto casino Stake, which is blocked in the country.

The Premier League has already voted to ban gambling sponsors from appearing on the front of shirts, which will come into force in August. The government’s new guidelines will go further in prohibiting the deals clubs can make and the brands they can display on advertising boards and around the ground.

Fans Often Unaware Which Sites Are Unlicensed

In announcing the new measures, Culture Secretary Lisa Nandy said, “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.”

“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.”

Stake, Bournemouth’s sponsor bj88, and Wolves’ sponsor DEBET, were previously licensed in the UK through a white-label partnership with TGP Europe. Despite having their licenses revoked, the companies have continued to appear on Premier League shirts and expose their brands at matches.

The UK Gambling Commission reported that many UK residents cannot distinguish between licensed and unlicensed gambling companies, although some used black market sites in search of better odds and offers.

The government noted that the clubs are not doing anything that violates rules by promoting unlicensed gambling companies. However, new rules will mean that this will no longer be the case. The new consultation on sports sponsorships will be launched this spring.

Companies Accepting UK Customers Despite Losing Licenses

The companies have faced scrutiny over claims they continue to accept UK customers despite not holding valid licenses.  Gambling Minister Baroness Twycross, who is leading a task force that is targeting illegal gambling, said the new measures aim to protect the public.

She stated, “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.”

The task force will focus on:

• Stopping illegal operators from advertising on social media platforms
• Preventing payments to unlicensed sites 
• Improving cross-agency collaboration 

Blocking official sponsorships of sports teams from unlicensed operators may prevent many viewing soccer in the UK from being exposed to the brands. However, research has shown that unlicensed gambling companies also target illegal streaming of sports as a way to target players.

Licensed gambling companies in the UK claim that the country’s decision to raise taxes on the industry will drive users to black market sites. The government says its new policy will prevent this from happening.