As UK gambling adjusts to a new era and tighter frameworks, with a deeper examination of ROI on marketing strategies, Paddy Power has opted to extend its sponsorship of the World Darts Championship to 2031 through a new five-year deal.
The extension of the deal comes despite Paddy Power’s parent company, Flutter Entertainment, laying out a mitigation plan which includes a reduction in “operational, promotional and marketing spend” in response to last week’s tax hikes in the UK.
However, the growth of darts has clearly led to it being identified as a worthwhile investment for Paddy Power’s marketing strategy.
Brand exposure
One of the key differentiators between darts and other sports sponsorship deals is the ability for full ownership. Given increasing restrictions, fewer and fewer brand partnerships allow for as much exposure as darts provides, where whole tournaments are taken over by the brand.
Speaking on iGaming Daily earlier in the year, BetMGM’s UK Managing Director Gethin Evans, revealed that the operator’s sponsorship of the Premier League has achieved 96% brand association.
He said: “You don’t particularly associate any betting company with a football team, no matter how long the partnership has been going on. It’s really hard to get that association. Whereas with darts, you really get that ownership of the sponsorship and you get to be part of that rise and part of that fan base.”
Paddy Power’s activations surrounding the world championship’s includes its association Prostate Cancer UK, which has seen the operator has donated more than £2m to the charity since becoming title sponsor of the event in 2023.
This figure has been boosted by campaigns such as the Bigger 180, which saw players, a fan in the crowd and Prostate Cancer UK share £180,000 when a nine-dart leg was hit – something that happened twice last year, and helped ensure the tournament remained in the headlines.
A Paddy Power spokesperson commented on the latest deal: “The Paddy Power World Darts Championship is the greatest party in sport, and we’re proud to extend our sponsorship for another five years.
“But above all, we are very proud to be able to use our sponsorship to help the vital and life-changing work Prostate Cancer UK does. Our charity initiatives have become huge, award-winning campaigns, and we look forward to continuing to support a push for a world where no man dies of prostate cancer.”
Industry challenges ahead
Flutter expects to be able to mitigate some of the financial impact of the tax changes, however, the company still expects to experience an adjusted EBITDA impact of $235m and $339m in 2026 and 2027, respectively.
For context, Flutter reported an adjusted EBITDA of $2.4bn in 2024, and is guiding for adjusted EBITDA of $2.9bn in 2025.
Reacting to the news last week, Kevin Harrington, Flutter UKI CEO, described the decision as “a very disappointing outcome and will have a significant adverse impact on our industry”.
He added: “The Chancellor rightly wants to address harm, but these changes will hand a big win to illegal, unlicensed gambling operators who will become more competitive overnight. These black market operators don’t pay tax and don’t invest in safer gambling.
“At 40%, the UK’s remote gaming duty is now above countries such as the Netherlands, where a recent tax increase saw a rise in illegal gambling and a fall in Government receipts. Despite this impact, I am confident that through both our scale and leading position in the UK, as well as the proactive cost initiatives that we are taking, we are well placed to navigate through today’s changes.”
Entain, the owner of the sponsor of darts’ UK Open, Ladbrokes, has also predicted a 25% reduction in marketing and promotions in mitigation of the financial changes.
Although there is no indication this will change in the wake of the tax upheaval, sports like darts that are linked heavily with the betting industry will no doubt be keeping a watchful eye on this new dawn for the UK industry.
Darts growing popularity
Held at London’s Alexandra Palace, the event has become a staple of the festive season, beginning this year on 11 December and culminating on 3 January.
Paddy Power’s association with the tournament has coincided with the rise of Luke Littler as the game’s biggest star, which has seen television viewership soar as the teenager reached the 2023 final at the age of 16 before winning the title one year later.
Sky Sports’ audience peaked at 4.8 million viewers for the 2023/24 final between Littler and Luke Humphries, the broadcaster’s highest-ever non-football peak. Average viewership was also up 29% year-on-year for the 2024/25 edition as Littler beat Michael van Gerwen in the final.
“Paddy Power has had a hugely positive impact on the World Darts Championship over the past two years,” said Matt Porter, Chief Executive of the Professional Darts Corporation, on the extension.
“Their creativity, investment and passion for the sport have elevated the tournament to new heights, delivering an unforgettable experience for fans in the arena and millions watching around the world.”
