U.K.: Banning Unlicensed Sponsorships

In response to the black market’s growing threat in the U.K., the government’s Department for Culture, Media and Sport is considering banning gambling sponsorships for operators not licensed within the U.K. The ban would seek to stop illegal firms using Premier League clubs as a platform to appeal to a British audience. 

Today, these deals, which in large parts fuel the U.K.’s thriving football sector, exist in a gray area. Betting and football are synonymous in the market, and longstanding licensed brands like Super Group’s Betway have had huge success from football sponsorships. In March last year, industry sponsorship and PR specialist Alan Alger told GGB’s sister publication iGB that Betway’s 2015 partnership with West Ham United had proven a “very good deal for Betway.”

But despite the myriad success stories, the sport has been littered with questionable deals, partnerships forged between notable black-market operators and Premier League teams, and an instance last year where an operator that lost its U.K. license continued its multi-year front-of-shirt deal with a prominent team, despite a regulatory scandal toppling the brand’s U.K. presence. 

The U.K.’s traditional sponsorship model has been on its way out for some time. In April 2023, English Premier League football clubs collectively agreed to halt gambling sponsorships on the front of match-day shirts, due to mounting pressure around claims of excessive gambling advertising. Due to come into force at the end of the 2025 season, teams and operators have been evolving their approach to sponsorships and how to best ensure their branding is prevalent throughout matches. 

Bet365 broke the mold in August 2024 when it signed a deal to become the primary sponsor of the UEFA Champions League, covering the men’s Champions League, from the 2024-25 season until the 2026-27 campaign. It signaled a new type of football sponsorship with wider-ranging access to viewers and fans, as the sector pivoted away from shirt branding.

Unlicensed Sponsorships and Money Laundering

Despite this shift, the U.K. government decided it must “crack down on gambling operator sport sponsorships,” it said in a February statement. “Ministers are deeply concerned about the dangers posed by the unlicensed gambling market, which has been linked to organized crime,” the statement continued.

“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.”

There are several Premier League teams currently partnered with unregulated operators. However, there is also a model that allows operators to partner with licensed peers to offer a white-label version of their product in the U.K. as part of securing a gambling sponsorship deal. At this point in the DCMS process, it is not yet known whether this model could be put in jeopardy. 

There are several Premier League teams currently partnered with unregulated operators. However, there is also a model that allows operators to partner with licensed peers to offer a white-label version of their product in the U.K. as part of securing a gambling sponsorship deal. 

One lawyer who works closely with teams on operator sponsorship deals says white-label sponsorships should not be threatened if the government is focused on eradicating money laundering and payments that put British consumers at risk. “The white-label model isn’t affected by that because you have got someone who is legitimately taking money from British consumers in a compliant way,” she notes. 

“The timing reflects a period of discussion between the Gambling Commission and DCMS as to the need for legislative change or other measures,” says Melanie Ellis, partner at Northridge Law. “I anticipate the government and Gambling Commission will want to implement this (ban) within a reasonably short timeframe, but my view is at least 18 months will be needed to complete the consultation process and have the necessary legislation—whether this is changes to the Gambling Act or regulations—to be approved and brought into force,” she says on the likely timeline for any changes. 

White-Label Model at Risk?

Both lawyers agree that changing legislation is generally a lengthy process. “I imagine they’d want to get something tabled before the summer,” says the legal source. Ellis agrees that the future for white-label partners is somewhat up in the air, but she says the government could look to prevent sponsorships by gambling brands that use a white-label arrangement to advertise in Great Britain but also operate sites on their own behalf that are licensed elsewhere.

The U.K. government’s DCMS and the Gambling Commission have previously said white-label football sponsorships were under investigation.

This followed news that Curaçao-licensed BC Game was operating illegally in a number of markets and had been declared bankrupt by a local court for failing to pay out player winnings. At the time BC Game was swiftly stripped of its U.K. white-label license and its sponsorship deal with Leicester City was thrown into question.

“It will be challenging to create such a ban which cannot be circumvented by operators, but also doesn’t inadvertently prohibit other arrangements where a licensee operates gambling sites under different brands,” Ellis adds. “I think it is most likely that the government will look to impose a prohibition on gambling operators sponsoring sports teams if they are not ‘subject to’ a Gambling Commission license, which would allow for sponsorships to continue under a white-label model. 

“This would reflect the concern this change is looking to address (that British consumers will be tempted to gamble with operators not licensed by the Commission), because where a white-label partnership exists British consumers should be directed to the licensed site when searching for the advertised brand.” 

When considering a sponsorship deal, there is some onus on the club to carry out sufficient due diligence against brands. Deals have been suspended after clubs have questioned the legality of a brand, but it’s not common. And today’s Premier League lineup is rife with offshore brands not licensed locally in the U.K. An investigation by sports publication Josimar Football recently found that Asian operator 8Xbet has increased its presence in U.K. football, despite no longer having a white-label license in place and being otherwise unlicensed in the U.K.

8Xbet Increases U.K. Presence

8Xbet previously held a white-label license via TGP Europe, but the latter surrendered its U.K. license in May last year following a Gambling Commission investigation into its white-label sponsorships. Josimar reported earlier this month that 8Xbet has nine live club partnerships in place in the U.K., including Premier League clubs Chelsea, Bournemouth, Nottingham Forest, Crystal Palace, Sunderland and Leeds United. It’s clear that action needs to be taken to ensure tougher regulation is taken. 

Licensed operators in the U.K. have praised the DCMS announcement to open a consultation “this spring.” In a February letter to Premier League Chief Executive Richard Masters, Entain CEO Stella David said the league’s “continued commitment to illegal gambling sponsorships (had) been deeply concerning.”

She accused the league of lobbying the government to “retain unregulated gambling brands on shirt sleeves and stadium hoardings.”

A new law was introduced in the U.K. to help regulate its football sector last year. The Football Governance Bill sought to establish an independent football regulator to oversee the sport and handle issues such as club licensing. 

As the bill passed through the House of Lords in March 2025, there was a brief discussion around gambling sponsorships after an amendment to fully ban gambling sponsorships and advertising in English football was proposed. It was swiftly vetoed by a majority of 339-74 as peers highlighted the reliance on sponsorship deals for smaller clubs. 

The U.K.’s minister for gambling, and the bill’s sponsor, Baroness Twycross, said she acknowledged the importance of monitoring gambling sponsorship in football but put forward that the government had already set the gambling industry a “task to raise standards” to ensure gambling advertisements are “proportionate and appropriate.”

It remains to be seen what the future of gambling sponsorships looks like for English football. While there does appear to be a consensus for a harder stance against unlicensed deals, a framework will need to ensure protection against potential loopholes.