Since the early 2000s, gambling brands have been a significant source of revenue for sports teams and leagues. The Premier League was one of the first to accept sponsorship on shirt advertising after Fulham signed a deal with Betfair in 2002. 

As the gambling industry has grown in popularity, it has attracted more attention, and brands have invested more in team sponsorships. Eight Premier League clubs have partnered with such brands and offer front-of-shirt positions in exchange for millions in funding.

Aside from fan attention, the sponsorships and activities of gambling operators have also caught the eyes of the government. This has resulted in new legislation being passed and white papers drafted that not only limit the reach of these companies but have also encouraged sports and leagues to institute boundaries.  

Sponsorship Values

It is estimated that, between the eight PL clubs currently under contract with betting brands, more than £60 million in sponsorship is generated annually.

Individual deals between clubs are often worth almost this amount over their term. Looking at the agreement between West Ham United and Betway, valued at £9.9 million annually, the six-year deal is worth around £59.4 million.

Likewise, Everton’s sponsorship agreement with Stake.com is worth an estimated £9.8 million annually. Although the deal was initially signed for just two years, this still equates to £4.9 million in sponsorship that the club received. 

Introduction of Laws

The latest laws ratified by the UK government relating to the advertising of gambling brands and activities came into effect in October 2022. These measures followed numerous consultations spearheaded by the Committee of Advertising Practice (CAP).

While they didn’t significantly affect clubs’ ability to acquire sponsorship from gambling brands, they did have a major impact on the endorsements earned by individual sports players. Under the new laws, top footballers and sports players with high levels of under-18 followers on social media can no longer appear in advertisements for gambling activities.

This was enacted to prevent underage sporting fans who are heavily influenced by the lifestyles and endorsements of such players from attempting to engage in an activity that, at their age, is illegal. Since its inception, the law has been used to ban several ads, including an ad featuring former Manchester United player Gary Neville and boxing star Anthony Joshua.

White Paper

After the new advertising laws were enacted in 2022, the UK government released a new white paper in early 2023 that sought to transform gambling legislation radically. This legislation aims to reduce problem gambling, which has been on the rise in the country alongside the types of platforms reviewed on sites like casinos.com.

According to studies and analytics undertaken by the UK Gambling Commission, approximately 2.5% of British adults are with gambling addictions or problem gambling. This equates to nearly 1.3 million people, a significant portion of which are those engaging in online gambling activities. 

And it is not just adults who are affected; a 2019 study conducted by the UKGC revealed that, among children aged 11 to 16, a staggering 36% had gambled online at some point during the previous year. Of these, 11% had done so within seven days before the survey.

In response to these results, the white paper, which is currently undergoing review, takes a strict stance on gambling and introduces several new ways to address this problem. Among these are statutory levies to be paid by gambling operators to treat problem gamblers, stake limits (particularly for younger players), player protection checks, and rules over how bonuses and promotions can be presented. 

Further steps will also be implemented to give the UKGC more powers and to close various loopholes that under-18 players are currently using to access gambling services. 

Although none of these laws directly influences the sponsorships operators offer to sports teams, the greater scrutiny and forthcoming additional regulation in the industry have sparked changes in how bookmakers can advertise through team sponsorships. 

Premier League Decision

Following in the steps of the Spanish LaLiga, which banned front-of-shirt advertising of gambling brands during the 2021-2022 season, the Premier League has done the same. Arguably the largest football league in the world and responsible for the high advertising revenues mentioned earlier, the PL has said that front-of-shirt advertising will no longer be sold to gambling brands as of 2026.

For many operators, this is a major blow, as their sponsorship is clearly seen by millions of viewers worldwide each time their partnered team plays. However, the PL decided to implement the rule, which will surely hurt club finances, proactively and as a voluntary measure.

Many speculate whether this foreshadows laws that will eventually be enacted to make this move official. However, the PL states that this move simply comes after consultation with UK government offices and to be proactive in the fight against gambling. 

The news may be harsh for operators who have lost or will lose a prime advertising position. However, it is not all bad. Aside from being announced three years before enforcement, the Premier League has stated that stadium advertising and shirt sleeve positions can still be accessible to gambling names.

While these will garner much less attention, bookmakers can still use sporting events to advertise, even at a diminished capacity.

Conclusion

Whether or not there is any truth to the fact that laws are in motion to enact what the Premier League has done voluntarily remains to be seen. Up to just months before the 2024-2025 season kick-off, there has been no official mention of such laws.

Regardless, advertising laws previously approved, followed by the decision of the Premier League (and possibly other bodies that will follow), have significantly stunted gambling brands’ opportunities for exposure, which will likely hit their earnings in the long run. But considering this will likely decrease underage and problem gambling, it may prove an injury worth accepting.