What does the future hold for UK football’s gambling sponsorships?

The landscape of football sponsorships is undergoing a seismic shift, driven by the expiration of shirt deals, the introduction of a new football regulator, and heightened scrutiny of white label arrangements. These changes pose significant challenges and opportunities for gambling operators and clubs alike.

For decades, the gambling sector has maintained a robust relationship with English football, particularly through sponsorship agreements with Premier League clubs. This alignment has transformed the branding landscape, making gambling a synonymous presence within the sport.

However, recent developments signal a departure from the traditional model. Concerns regarding excessive gambling advertising, particularly its impact on younger audiences, have prompted Premier League teams to implement a voluntary ban on front-of-shirt sponsorships, effective at the conclusion of the 2025-26 season.

This impending change necessitates a strategic pivot for clubs and operators, urging them to explore innovative methods of promoting their brands during matches. Alan Alger, a noted expert in sponsorship and public relations, anticipates that clubs are already adjusting their pricing strategies to capitalize on the last opportunity for front-of-shirt visibility. “Informed clubs will likely raise their prices, recognizing this as their final chance for lucrative deals,” he states.

Reflecting on his past experiences, Alger highlights the success of the 10-year partnership between Betway and West Ham United, positioning it as a prime example of how effective sponsorship can enhance brand visibility. “Engaging with the most-watched sport is an optimal entry point for brands,” he asserts.

As the traditional sponsorship model evolves, new avenues for brand visibility are emerging. Experts predict that gambling branding will persist in football, albeit through alternative means such as LED advertising around pitches and innovative marketing campaigns involving players. “Global brands may leverage player appearances in markets with less stringent regulatory frameworks,” suggests Alger.

Currently, UK regulations prohibit players under 25 from featuring in gambling marketing, addressing concerns about underage exposure. Nevertheless, the potential for partnerships remains robust. “The sleeve sponsorship and LED advertising avenues remain open, and global deals could still yield significant value,” notes a legal expert in gambling sponsorships.

The intricacies of these evolving agreements could introduce new levels of exclusivity. Many operators currently pursue global partnerships, but future agreements might lean towards regional partnerships, particularly in Asian or African markets. “Operators may seek regional collaborations that offer exclusivity for localized advertising opportunities,” the legal professional elaborates.

Strategic Partnerships: Elevating Brand Presence

Operators are increasingly collaborating with league and tournament organizers to maximize brand exposure and reach. A notable example is Bet365’s landmark partnership with the UEFA Champions League, which grants exclusivity over stadium branding during matches starting in the 2024-25 season. “This strategic move provides extensive exposure across multiple teams,” Alger explains.

However, these global agreements come with inherent risks associated with due diligence. “Leagues often possess a lower risk appetite compared to individual clubs, necessitating a comprehensive review of contractual rights to mitigate potential regulatory offenses,” a legal source cautions.

The UK government’s Department for Culture, Media and Sport (DCMS) and the Gambling Commission have begun investigating white label sponsorships, which permit non-UK licensed operators to engage in sponsorship arrangements, provided a compliant local product is available. Alger reflects on past sentiments regarding the model: “It seemed practical to maintain a UK-licensed brand to engage fans and clubs.”

In December, UK Gambling Minister Baroness Twycross announced that the government is scrutinizing the white label sponsorship model, following incidents involving operators like BC Game, which was deemed to operate illegally. This scrutiny has placed the future of existing sponsorships, such as BC Game’s association with Leicester City, under considerable uncertainty.

Current Developments with Betting Partnerships

In February, Stake lost its UK white label license amid a Gambling Commission investigation into its social media marketing practices. Despite this, Stake continues to be the shirt sponsor for Premier League team Everton, highlighting the complicated nature of gambling sponsorships in the current landscape.

The deal, signed in June 2022, raised eyebrows due to Stake’s cryptocurrency gambling operations, which remain permissible within the UK. The Gambling Commission has warned clubs promoting unlicensed operators of potential ramifications. Nevertheless, a legal source expresses skepticism about immediate changes to the white label model: “Legislative changes are infrequent, and the current framework mandates strict licensing for operators.”

A transformation of this model might depend on advocacy from either the football or gambling sectors. “Clubs turning down lucrative offers must weigh the potential reputational risks against the financial benefits these sponsorships provide,” they emphasize.

Lately, the regulatory landscape surrounding football in the UK has shown signs of evolution. The Football Governance Bill was introduced to create a regulatory framework governing various aspects of the sport, including sponsorships. This legislation aims to establish an independent football regulator responsible for club licensing and financial oversight.

Despite discussions to ban gambling sponsorships within the sport, the proposed initiatives faced considerable opposition due to concerns about financial stability for lower-tier teams. As highlighted during parliamentary debates, many members argued that these sponsorships represent a critical funding source.

Both Alger and the legal expert express doubts regarding the likelihood of a comprehensive ban on gambling sponsorships. “Although there have been restrictions in other sectors like alcohol and tobacco, it often takes substantial internal changes within sports organizations to effectuate a shift,” the legal expert notes.

Currently, the Football Governance Bill is advancing through the legislative process, but total prohibition on gambling sponsorships appears improbable. As the industry continues to adapt, the enduring connection between gambling and English football remains deeply entrenched, poised for reinvention rather than eradication.