Government Moves to Block Unlicensed Gambling Sponsors After Offshore Deals Reach Premier League

The government is preparing to revive plans aimed at preventing unlicensed gambling companies from sponsoring British sports teams, following months of delay that gave offshore operators time to secure new commercial partnerships with Premier League clubs.

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A consultation expected to launch this week will seek views on closing a gap in current gambling laws that still allows overseas betting brands without UK licences to advertise through sponsorship agreements. The Department for Culture, Media and Sport had originally indicated the review would begin in the spring, but little public progress followed after February.

That pause coincided with growing frustration inside Britain’s regulated gambling sector. One of the clearest warnings came in early June, when Entain chief executive Stella David urged gambling minister Baroness Twycross to accelerate the process. David argued that football clubs were likely finalising sponsorship contracts for the upcoming season and could interpret the government’s silence as an indication that such arrangements would remain permissible.

Only weeks later, Everton announced a three-year agreement placing crypto casino Stake.com on the sleeves of its shirts, a move that quickly reignited debate around football’s commercial ties to gambling.

Everton Deal Draws Fresh Scrutiny

The agreement also revived criticism surrounding the club’s relationship with Stake, which previously appeared as Everton’s main shirt sponsor before the Premier League’s voluntary decision to phase out front-of-shirt sponsorships from gambling companies beginning with the 2026-27 season. As clubs adjusted to those changes, many shifted gambling partnerships to shirt sleeves, training apparel and stadium advertising rather than ending the relationships altogether.

The timing of Everton’s latest deal drew criticism from within the licensed gambling industry. One senior executive argued that Greater Manchester mayor Andy Burnham, a lifelong Everton supporter who has frequently criticised gambling’s influence in football, should publicly oppose the arrangement, particularly given the visibility Everton enjoys nationally.

Regulatory Gap Under Review

Stake no longer operates under a British gambling licence. Last year its UK presence ended after its white-label partner, TGP Europe, surrendered its licence while facing regulatory scrutiny. Around the same period, the Gambling Commission began investigating promotional material in which the Stake brand appeared alongside content created by adult performer Bonnie Blue.

Following that investigation, the regulator reminded sports clubs that promoting unlicensed gambling businesses serving British consumers could expose both organisations and senior executives to criminal liability. Stake has maintained that it does not accept bets from customers in the UK.

Current legislation nevertheless leaves room for overseas operators that do not hold UK licences to sponsor British clubs, particularly businesses focused on audiences in Asian betting markets. The forthcoming consultation is expected to examine whether that exemption should be removed.

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In her correspondence with ministers, David also warned that some unlicensed operators were allegedly continuing to take bets from British customers illegally. She argued that such activity could divert tax revenue, benefit organised criminal networks and expose vulnerable consumers to gambling services outside Britain’s regulatory safeguards.

There has been no suggestion that those allegations were directed at Stake, and no allegation of wrongdoing has been made against the company.

Stake’s Previous Controversies

Stake has repeatedly attracted regulatory and public attention beyond the UK licensing issue. Its branding has appeared across a number of viral social media videos, including content involving graphic violence as well as material featuring Bonnie Blue. The company has previously maintained that creators used its branding without authorisation or approval.

Earlier reporting also examined promotional campaigns linked to the Australia-based operator, including an offer providing a free wager after customers gambled thousands of dollars within a week. Everton subsequently asked Stake not to use club branding in connection with that promotion, although the wider sponsorship agreement remained in place.

Separate reporting by the Observer in 2022 questioned how British users appeared able to access cryptocurrency gambling through the platform despite restrictions in the UK. Stake responded at the time that it maintained strict anti-money laundering and responsible gambling procedures and had blocked customers attempting to circumvent geographical restrictions through virtual private networks.

Government Prepares Next Step

The government now appears ready to address what ministers increasingly regard as a regulatory loophole. Officials believe it is inappropriate for football clubs to elevate gambling businesses that fall outside Britain’s licensing system and fear such visibility could steer supporters toward operators beyond domestic consumer protections.

Everton declined to comment on its latest sponsorship agreement, while Andy Burnham did not respond to requests for comment.

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Source: theguardian.com