HomeInsightsGovernment to close loophole that enables unlicensed operators to sponsor British sports

The government has today announced that it is going to launch a consultation on sports sponsorship in the spring, which could mean that non-GB-licensed operators are no longer able to sponsor sports teams and leagues in Great Britain.

This is part of broader measures to tackle the illegal gambling market, the government having recently set up an Illegal Gambling Taskforce, led by Baroness Twycross, which focuses on:

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

On the sports sponsorship front there has been an increase in the amount of non-GB-licensed brands being showcased by English football clubs, in particular. Much of this is as a result of white label operators like TGP no longer being licensed in Great Britain.

As the press release states,  clubs are not currently acting unlawfully by entering into these deals – provided that they and the operator have adequate preventative measures in place to ensure that British users cannot gamble – but there is a concern from the government, that:

Unlicensed operators do not adhere to laws and guidelines designed to protect customers, including mandatory financial vulnerability checks, responsible advertising, and fair terms. They often lack data protections, leaving customers vulnerable to fraud and identity theft.”

And even if British consumers are not actively gambling using these sites, there is a broader concern that globally watched sport, such as Premier League matches, should be reserved for partnerships with entities that have gone through the same levels of rigour and adhere to the similar standards as those entities licensed by the Gambling Commission.

Until we see the consultation, we won’t know if the white label model will also be outlawed as part of these measures. This is currently a legitimate way in which non-GB-licensed brands are able to lawfully operate and advertise in Great Britain, despite the criticism it has received.

What we don’t know either, is how long all of this will take. Last year the Premier League voluntarily committed to removing all gambling sponsorship from the front of shirts by the end of the 2025-26 season, but there will be many clubs considering betting partners for shirt sleeve and other inventory for next season and beyond. Legislative changes will be needed for any sort of ‘ban’ but our advice to any sports rightsholder would be to think carefully about new partnerships (and take a careful look at those regulatory change provisions with any existing deals), as it appears the days are finally numbered for sports sponsorship arrangements with non-GB-licensed operators.