The UK government has announced plans to launch a consultation on prohibiting unlicensed gambling operators from sponsoring British sports teams. The move reflects growing concern about the risks posed by the illegal gambling market, which has been linked to organised crime and offers none of the safeguards required of licensed operators.

Scope of proposals

The breadth of the proposed ban will, no doubt, be explored in the consultation. The announcement indicates that the proposed ban will have an impact on sponsorship of British sports teams, and there is a clear focus on the Premier League clubs. Whether it will also extend to sports sponsorship in the UK more generally, including sports events such as boxing bouts or horseracing, leagues or athletes is yet to be seen.

The concern

Gambling businesses providing services to consumers in Great Britain must hold a Gambling Commission licence. A licence requires compliance with multiple safeguards designed to protect punters. 

As many British sports, and in particular the Premier League, have huge global audiences, it is understandable why overseas operators targeting non-UK audiences (who may or may not be licensed in other countries) see sponsorship of British teams as a highly valuable marketing tool.  The challenge is that these betting sponsors, which are not licensed in the UK, still come to the attention of UK consumers. Even if those operators operate robust geoblocking, Virtual Private Networks (VPNs) allow UK consumers to access these sites relatively easily. The government is concerned that, as a result, the UK public is vulnerable to such businesses that operate outside the UK regulatory framework. 

The government has specifically raised concerns that unlicensed operators do not carry out mandatory financial vulnerability checks, comply with advertising rules, or follow fair‑terms requirements. They also warn that these sites tend to offer little or no data protection, putting customers at greater risk of fraud or identity theft.

The proposed sponsorship ban aims to reduce these risks by preventing unlicensed firms from gaining visibility and legitimacy through high‑profile sports partnerships. Several Premier League clubs currently have sponsorship deals with companies not licensed in Great Britain, although those clubs are not acting unlawfully provided the operators do not offer their services to UK consumers.

The context

Although the Premier League has already committed to phasing out front‑of‑shirt gambling sponsors by the end of the 2025–26 season, gambling operators, including unlicensed ones, are still able to secure other forms of visibility, such as Premier League clubs' sleeve sponsorships, and lower league front-of-shirt deals.

The forthcoming consultation forms part of a broader government effort to tackle illegal gambling. A newly established Illegal Gambling Taskforce has been set up to curb unlicensed advertising on social media, block payments to illegal operators, and strengthen collaboration between enforcement bodies. 

There has also been a clamp-down on white label operators, including one such operator which used to sponsor several Premier League teams. This affects the ability of overseas gambling brands (which rely on the licence of such white label operators) to easily operate in the UK.

The sentiment of the government is clear. It is getting tough on illegal gambling operators.

Regulation in other brand sectors

Sports rights holders are increasingly having to navigate complex rules that affect sports sponsors from highly regulated sectors. Most recently, the new ban on less healthy food advertising (see our note here) and rules on advertising crypto assets (see here) have required consideration in a sponsorship context. There is also a proposal to ban the sale/advertising of high-caffeine drinks to under 16s (see here) which could have an impact on a key sponsorship category.

The announcement of this latest consultation creates further uncertainty for clubs' commercial teams. And for the lawyers on both sides of sponsorship deals, it is another reminder to carefully consider how regulatory changes and compliance are addressed in agreements:  

• Who is responsible for compliance, and how is this managed through approval processes?
• How far must a rights-holder go (and at whose cost) to enable compliance (for example with implementing geo-blocking or 'health' warnings)?
• Is there an impact for other sponsors of the team which may need to reference/show the brand/product of the regulated sponsor in their materials? (Particularly relevant where the sponsor in a regulated sector is a title sponsor or has prominent kit branding rights).
• What happens when the law changes (in the UK or abroad) — if rights can't be delivered, is the fee reduced? At what point can termination be triggered? 

It's a complex landscape. If you're trying to get to grips with it, please contact one of us, or your normal Lewis Silkin contact.