The rise in remote gaming duty has forced iGaming operators to take a full-scale assessment, pushed to reset to ensure a path to profitability is maintained.
Dean Akinjobi, Chief Executive Officer and Founder of Football Media, broke down for iGaming Expert what this means for the future of sports sponsorship looks like for operators, if the value of football sleeve deals has changed and what impact tax changes will have on this summer’s FIFA World Cup.
How will the remote gaming duty increase change the landscape around sports sponsorship?
I think that the increase in remote gaming duty from 21% to 40% is not just a tax adjustment; it is somewhat a structural shift in the economics of UK sport.
As a result, we are likely to see immediate market rationalisation, for some operators, particularly those heavily exposed to online casino and slots, the UK will no longer deliver acceptable margins, the impact will be huge, as even a modest operator exodus would materially affect sports rights holders, given the sector contributes an estimated £400m to £500m annually, approximately 25% to 30% of total UK sports sponsorship revenue.
Beyond contraction, I believe that consolidation is inevitable. A smaller group of well-capitalised operators will essentially end up absorbing market share. Those with diversified revenue streams and operational efficiency will survive the margin compression and strengthen their market dominance over time.
For rights holders, the era of iGaming revenue abundance will soften, as commercial assets that previously benefited from aggressive iGaming competition will now face greater scrutiny. That will result in sponsorship valuation increasingly being tied to demonstrable performance rather than category demand.
The outcome will be moving from a volume-driven sponsorship market to a performance-justified one.
As budgets tighten and profit margins are squeezed, how will smaller operators shift their focus in sports sponsorship?
Smaller operators will need to operate with far greater precision as brand visibility alone will no longer justify multi-million-pound investments.
As a result, partnerships will be assessed against acquisition efficiency, customer lifetime value and retention impact. That shift should arguably have occurred years ago, but the new tax environment will simply accelerate the timeline. Therefore, we are likely to see tighter alignment between sponsorship and CRM strategy, greater reliance on first-party data, performance-linked partnership structures and a preference for highly targeted properties over broad exposure.
The operators that treat sponsorship as a commercial growth lever rather than a brand exercise will remain competitive and those that do not will struggle to defend spend internally.
Has the increase impacted the value of football sleeve sponsorships for operators?
Yes, the duty increase has impacted the sleeve market.
Before the tax shift, there was an assumption that operators exiting front-of-shirt sponsorship in the Premier League would transition seamlessly into sleeve positions, driving increased demand and upward pricing pressure.
However, a 40% tax on core revenue products changes capital allocation decisions, with operators now evaluating whether premium sleeve assets deliver sufficient commercial return relative to alternative marketing channels.
As a result, some operators are reassessing investment levels, others are considering lower-cost category partnerships with stronger activation flexibility, which is resulting in rights holders experiencing more commercially competitive negotiations.
That said, the strongest and most strategically ambitious operators will still pursue premium football assets, as for brands positioning themselves as long-term market leaders in a consolidated landscape, top-tier football remains a powerful equity-building platform.
Will operators need to be smarter in how they maximise their partnerships in a tougher profitability climate?
They will, but the reality is they should have been doing this already. Historically, strong margins might have masked sponsorship inefficiency and the 40% duty removes that cushion. Therefore, every partnership must now integrate with data strategy, media buying, CRM and measurable commercial objectives.
At Football Media, we consistently see that sponsorship outperforms only when it is embedded into a broader performance ecosystem, not when it is treated as a standalone branding exercise.
The operators that thrive in this new climate will be those who leverage AI and data modelling to optimise activation, extract digital and content value beyond static assets and integrate partnerships directly into customer journeys.
This is not about spending less; it is about extracting more from every asset deployed as we enter a precision era of sports sponsorship.
Is sports multimedia (score apps, influencers, digital platforms) the direction operators are likely to take?
Sports multimedia offers clear advantages in a margin-compressed environment, with lower barriers to entry, stronger attribution, targeted audience segmentation and agility. Operators will naturally increase focus in this space.
However, the greater challenge is innovation. Too often, operators replicate category competitors rather than drawing inspiration from cross-sector leaders. True competitive advantage will come from adapting strategies seen in global consumer brands, blending cultural relevance, digital storytelling and performance accountability.
Digital sports media is a logical direction, but the operators who differentiate creatively and strategically within that space will separate themselves from the rest.
How impactful is it that the tax changes come into force just before the World Cup? Will it change operator visibility?
The timing is significant. Major tournaments such as the World Cup traditionally trigger aggressive marketing cycles. However, with tighter margins now in force, UK operators will approach the World Cup with greater financial discipline.
Budgets will likely concentrate on high-performing digital channels, first-party data activation, conversion-focused creative and performance optimisation rather than pure awareness. Visibility may not disappear, but it will become more selective and strategically allocated.
The World Cup will act as an early test case of how effectively operators can compete in a high-tax, high-scrutiny environment while still capturing peak audience attention.
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