Following an earlier announcement, the government has launched a consultation on proposals to ban sponsorship and related advertising arrangements involving gambling operators that are not licensed by the Gambling Commission. The move follows growing concerns about unlicensed overseas operators securing visibility in the UK market, particularly through sport.
The consultation highlights a perceived gap in the current regulatory framework. Under existing rules, gambling operators that are not licensed by the Gambling Commission may still enter into sponsorship in Great Britain, provided their gambling services are not accessible to consumers in Great Britain. In practice, this is often achieved through geo-blocking measures. However, the government notes that consumers can bypass such restrictions by using virtual private networks.
According to DCMS, concerns have intensified over the past year, particularly within football, following changes in the gambling advertising and sponsorship landscape.
What is being proposed?
The government is consulting on legislation that would prohibit unlicensed gambling sponsorship and advertising across all sectors in Great Britain, including sports sponsorship arrangements.
The proposal is intended to ensure that businesses, sports clubs and other organisations only promote gambling operators that are subject to the UK's regulatory framework and oversight by the Gambling Commission.
While the initial announcement had suggested the ban might be limited to football club deals only, the current proposals are considerably broader. They encompass all physical advertising "displayed at and associated with sporting and other cultural events such as kit and equipment sponsorships, event paraphernalia such as programmes, ground and field advertising, venue infrastructure, and naming of leagues, events and venues." This wording appears to leave open the possibility for 'local' sponsorships elsewhere in the world to continue - including, for example, through virtual advertising deployed on overseas broadcasts. Such an approach makes sense, particularly where those sponsors are licensed in the relevant local territory, even if not in the UK.
The government's objectives
Consumer protection
The government is concerned that consumers may be exposed, directly or indirectly, to unregulated gambling operators that do not provide the safeguards expected of Gambling Commission licensees. These may include player protection measures, consumer redress mechanisms and anti-fraud controls. Particular emphasis is placed on protecting young people and vulnerable consumers.
Preserving the integrity of the regulated market
The consultation argues that operators benefiting from sponsorship and advertising exposure in Great Britain should be subject to the same regulatory obligations as licensed operators, including compliance with the Gambling Commission's Licence Conditions and Codes of Practice (LCCP). The government considers that permitting unlicensed operators to obtain marketing visibility risks undermining the UK's licensing regime.
Implications
While the consultation has obvious implications for gambling operators, its impact could be much broader. Sports clubs, governing bodies, rights holders, media organisations, advertising agencies and sponsorship intermediaries should review any existing or proposed relationships involving gambling brands whose regulatory status may be unclear. If the proposals are adopted, organisations may need to undertake more extensive due diligence to verify that gambling sponsors hold the necessary Gambling Commission licences before entering into commercial arrangements. While it is proposed to introduce the ban from August 2027, the consultation indicates that existing deals could continue until the beginning of August 2028. Nevertheless, this suggests that some long-term deals may need to be terminated early.
Consultation deadline
The consultation ends on 9 September 2026. Following consideration of responses, the government will decide whether to introduce the proposed legislation.
Unhealthy food and drinks – a future ban on the horizon?
There have recently been murmurings about a ban on HFSS (high fat, salt or sugar) food and drinks sponsorships in the UK. This comes despite the fact that the new restrictions on advertising of less healthy foods (LHF) are only about six months old (see our note on the impact for sponsorships of the new LHF rules here).
The House of Commons Health and Social Care Committee has recently issued a report in which it calls for brand and 'range' advertising to be brought within the scope of the new LHF rules as soon as possible. In the longer term, it is proposing a ban on all outdoor advertising of HFSS (high fat, salt or sugar) products by July 2027 (i.e. not just the narrower sub-set of LHF products). The report also proposes a consultation on extending restrictions to sports sponsorship on HFSS food and drinks, in addition to social media and online gaming app notifications with offers.
A regulated future
Taken together, these developments point to a broader regulatory direction of travel: increased scrutiny of sponsorship and advertising arrangements where there are concerns about consumer protection, public health or the visibility of products and services to younger or vulnerable audiences. Whether in relation to gambling operators outside the UK licensing regime or less healthy food promotions that sit at the edge of existing restrictions, brands, rights holders and agencies should expect closer attention to due diligence, contractual controls and the reputational risks of partnerships in sensitive sectors.
