Government Proposal Targets Unlicensed Sponsorship Deals
The UK government has set out plans to ban unlicensed gambling operators from sponsoring sports teams, with a particular focus on Premier League football clubs that have featured such companies on their shirts and commercial material.
The proposal, announced by the Department for Culture, Media and Sport (DCMS), would make it unlawful for companies without a UK Gambling Commission licence to enter into sponsorship agreements with sports organisations, including the English Premier League. Under current rules, gambling firms based overseas that hold no UK licence may still pay clubs for high‐visibility rights if they do not directly offer their services to UK customers, but ministers say this loophole allows unregulated operators to benefit from exposure among British fans.
Culture Secretary Lisa Nandy said ministers are concerned about the impact of unlicensed gambling brands raising their profile through high-profile sports sponsorships, potentially drawing fans towards platforms that do not meet UK regulatory standards or offer consumer protections. The government will consult further on the proposal in the coming months before any legislation is drafted.
Scrutiny Over White-Label And Overseas Operators
The move responds to a notable trend in recent seasons where several Premier League clubs have featured gambling logos from companies that no longer hold UK licences or never acquired one, often arranged via “white-label” licensing arrangements relying on third-party providers. Many of these arrangements have drawn scrutiny for providing insufficient safeguards for British consumers, especially concerning anti-money-laundering rules and responsible gambling protections.
A voluntary internal deal within the Premier League mandates an end to front-of-shirt gambling sponsorships by the end of the current season, with the first prohibited football season set for 2026/27. However, the voluntary agreement does not cover sleeve sponsorships or other commercial tie-ups. The government’s proposed ban aims to close these remaining paths to visibility for unlicensed operators.
Industry Reaction And Next Steps
Industry voices have offered mixed reactions. Supporters argue that banning unlicensed sponsors could protect fans by ensuring marketing is tied to companies subject to strict UK regulations and consumer protection frameworks. Critics warn that shrinking the pool of paying sponsors could reduce commercial revenues for clubs, especially those outside the elite “big six” that rely heavily on sponsorship income.
The government’s announcement forms part of a broader effort to tackle the illegal gambling market, as well as strengthening protections around online betting and gambling advertising. Prior warnings from regulators have highlighted gaps in the current regime when it comes to operators that accept UK customers without appropriate licences, and ministers believe this sponsorship ban will be a further step towards harm reduction and fair competition for regulated firms.
The DCMS consultation will seek public and industry views before final policy decisions are made, with ministers indicating that legislation could follow later in 2026 to enshrine the ban in law.
