The UK Government has promised a crackdown on the unlicensed gambling market. New measures will see a cross-industry taskforce protect sports fans from gambling harm.
Culture Secretary, Lisa Nandy, said: "It's not right that unlicensed gambling operators can sponsor some of our biggest football clubs, raising their profile and potentially drawing fans towards sites that don't meet our regulatory standards."
The Betting and Gaming Council, the industry body that represents licensed operators, has supported the move, which follows on from action taken last year by the Gambling Commission (UKGC).
Government action
The UKGC warned a handful of Premiership clubs about their relationship with TGP Europe, which ran several betting sites, including 12bet and the UK arm of Stake. TGP Europe left the British market after being found to have failed anti-money laundering and responsible gaming requirements.
Premier League clubs have voluntarily agreed to stop displaying gambling sponsorship on the fronts of shirts. But this still leaves sleeves and training kits as potential canvases for gambling ads.
To curb the unlicensed gambling market, the government has announced a new taskforce – the Illegal Gambling Taskforce – that includes major companies like Visa, Mastercard, and Google, and is led by Gambling Minister Baroness Twycross.
The stated aim of the group is to stop illegal betting operators advertising on social media and to prevent punters paying unlicensed operators. The task force was launched last month.
More measures
Under the latest measures, unlicensed operators would be prevented from sponsoring sports clubs. This would include sleeve sponsorships and would include Premier League clubs too.
Currently, several high-profile clubs advertise such operators. Everton still displays Stake as its front-of-shirt sponsor. BJ88 appears on Bournemouth shirts while DEBET can be seen on Wolves' shirts. Most of these sponsorship deals are set to end this year, but the government wants to prevent any such deals in the future.
The consultation highlights that clubs are not operating illegally by accepting unlicensed sponsors, as long as the operators do not accept UK players.
Stake and other TGP companies left the UK market last year, but the Premier League's global appeal means sponsorship remains a lucrative opportunity.
This means UK fans are exposed to unregulated companies. And, according to the Government, this leads UK fans to unlicensed sites, where they do not enjoy the same protections as they would with regulated operators.
Many do not conduct financial vulnerability checks or meet sanctioned fair terms policies. A Government statement also highlights the links between unlicensed sites and organised crime, due to the lack of anti-money-laundering requirements.
Not only do bets potentially fund criminal gangs, but the use of unlicensed operators enhances the likelihood of scams and fraud. Baroness Twycross said:
"We know the real harm that unregulated gambling can cause, exploiting vulnerable people and leaving consumers without the protections they deserve."
Preventing fans from accessing unlicensed sites also funnels them towards licensed operators, who pay UK gambling taxes and licensing fees.
