UK Culture Secretary Lisa Nandy recently announced that the government will consult the public on whether to ban unlicensed gambling operators from sponsoring sports teams. Currently, operators without a UK license can sponsor teams, including Premier League clubs, through "white label partnerships" with licensed companies. In plain terms, this sponsorship loophole might soon be closed. The trigger for this initiative was in February 2025, when the online gambling platform Stake continued to sponsor Everton Football Club after losing its UK license, causing public uproar. Want to keep up with the latest trends in UK gambling advertising regulation? Visit the PASA website for ongoing policy updates.
Background: White label partnerships as a regulatory "backdoor"
The core issue at present is the "white label partnership" model: operators not licensed in the UK can still gain brand exposure through jersey advertising and other means by partnering with local licensed companies. Affected clubs include Bournemouth, Sunderland, and Wolves. Although the clubs are not currently breaking the law, the government believes that these unlicensed operators are not subject to UK Gambling Commission regulatory constraints, potentially posing greater risks to consumers.
Nandy emphasized: "When fans place bets, they should know that the websites they use are properly regulated and protected. It's unreasonable for unlicensed operators to sponsor our biggest football clubs, leading fans to websites that do not meet regulatory standards."
Consultation details: Starting this spring, a multi-pronged approach
The consultation will begin in the spring, seeking opinions from the sports and gambling industries. The proposed ban is part of the government's overall strategy to combat unlicensed gambling activities, with other measures including:
Establishing a special task force on illegal gambling (launched in January), in collaboration with giants like Google, Mastercard, TikTok, and Visa
Focus on: social media illegal ads, cutting off payment channels for unlicensed sites, and strengthening inter-agency cooperation
The Under-Secretary of State for Gambling Affairs, Baroness Twycross, stated that she will work closely with the special task force to take decisive action against consumer-harming practices.
Industry impact: From the front of the jersey to the sleeve, sponsorship value remains
It is noteworthy that from the end of the 2025-26 season, the Premier League has banned gambling ads on the front of jerseys, but sleeve sponsorship is still allowed. Industry experts believe that the value of gambling sponsorships has not disappeared but has shifted in form.
A legal expert familiar with gambling sponsorships noted: "Sleeve sponsorships and LED billboards are still available, and using players to promote brands globally is still feasible. The value of sponsorship depends on the contract structure; if it's a global agreement, the value remains significant."
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This article is from "PASA-Global iGaming Leaders," a gambling industry news channel:https://t.me/pasa_news
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