Entain Chief Executive Officer, Stella David, has urged the government and the Gambling Commission to follow the Financial Conduct Authority’s lead and act with greater urgency to prohibit unlicensed sponsorships in British sport.
The Betting and Gaming Council also added that the government needs to ‘act without delay to protect consumers’, as the government’s latest consultation request from the Department of Culture, Media and Sport (DCMS).
The Ladbrokes and Coral operator has been on the front foot recently in the battle against unlicensed operators sponsoring sports teams in the UK market, while the BGC has long been calling for increased action to thwart exposure to the black market.
Whilst Entain acknowledged that the consultation is ‘another important step forward in tackling illegal gambling’, it compelled clubs and leagues to act with more haste in stopping exposure to the black market.
The increased calls will have only grown louder following the agreement of a deal between Everton and Stake, which will see the controversial operator take sleeve sponsorship branding on the Toffees’ kit.
Having initially confirmed a consultation in February, the delay in action will be lamented by many as allowing an opportunity for offshore operators to exploit a period of uncertainty and secure brand deals even amidst the front-of-shirt sponsorships being banned for gambling firms.
Currently, businesses can enter sponsorship and advertising deals with unlicensed operators, so long as their services are geo-blocked from UK players.
However, since this can be undermined by VPNs, the DCMS has finally launched a consultation on legislative changes to address this.
Entain: Clubs, leagues and bodies must act
Entain‘s David stated on the move: “Unlicensed gambling operators are often little more than fronts for organised crime. They target vulnerable consumers, pay no UK tax, and ignore safeguards licensed operators must provide. The Government has rightly recognised that these sponsorship arrangements create risks for consumers and for sport.
“Given that principle has now been established, we believe clubs, leagues and governing bodies should act immediately and voluntarily end relationships with unlicensed operators rather than wait for legislation to compel them to do so.
“The Government and the Gambling Commission should follow the example set by the Financial Conduct Authority, which has separately written to sporting bodies about unregulated crypto companies – warning that sponsorship deals could be rendered worthless within months.”
BGC: ‘Act without delay’
For the BGC, the consultation has been somewhat of a long time coming, with the trade body noting that this is a step in the right direction to combating the unregulated market.
A spokesperson for the trade body said: “Unlicensed operators should not be able to use British sport to promote illegal gambling to UK consumers. They operate outside Britain’s regulatory framework, offer none of the consumer protections required of licensed operators and put customers at unnecessary risk.
“As the harmful black market continues to grow, it is right that the Government is taking action to stop illegal operators using sponsorship and advertising to gain credibility and target British consumers.
“The Government should now act without delay to protect consumers. We look forward to engaging constructively with the consultation and supporting robust measures that strengthen the regulated market.”
Broader strategy needed
Entain believes action against illegal gambling must extend beyond shirt sponsorship and perimeter advertising.
Recently, the operator wrote directly to Premier League Chief Executive Richard Masters, asking for an immediate voluntary ban on sponsorship and advertising by all unlicensed operators, beginning with LED perimeter boards ahead of the upcoming season.
David added that the consultation ‘represents a significant step forward, but it also highlights the need for a broader strategy’.
The Entain CEO said: “The Government has correctly identified the risks associated with unlicensed gambling sponsorship in sport, yet many of these same operators continue to reach consumers through online channels.
“Sponsorship restrictions should not become a substitute for tackling the wider digital ecosystem that enables illegal gambling operators to grow their presence in Great Britain.”
