UK launches review to ban unlicensed football sponsors

The UK government will this week launch a consultation to ban unlicensed gambling operators from sponsoring British sports teams. The review aims to close a regulatory loophole that allows offshore crypto casinos to secure lucrative partnerships with Premier League clubs while operating outside the jurisdiction of the UK Gambling Commission.

For the regulated gambling sector, the delay in closing this loophole has distorted the market. Licensed operators such as Entain, which owns Ladbrokes, are subject to strict compliance costs and UK taxation, placing them at a commercial disadvantage against unlicensed rivals that can bid aggressively for premium advertising inventory.

The commercial risk materialised recently when Everton FC signed a three-year sleeve sponsorship deal with Stake.com. Stake effectively surrendered its UK licence last year amid a regulatory investigation. However, because current law only prohibits unlicensed operators from transacting with British consumers, not from purchasing advertising space, the deal remains legally valid.

Stella David, chief executive of Entain, anticipated this exact scenario. In a June letter to gambling minister Baroness Twycross, David warned that the stalled government timeline "raises the real and imminent risk of football clubs interpreting the absence of government action as a green light to enter into new sponsorship agreements for next season." She noted that these deals were "surely now being finalised."

David urged the government to explicitly warn the Premier League that contracts signed during the review period could be voided mid-season. She also warned that some unlicensed casinos are flouting the rules to take UK bets, stating they "profit international criminal networks, deprive the Treasury of tax revenues and have a detrimental effect on the wellbeing of UK consumers, especially the most vulnerable."

The Gambling Commission has already signalled a tougher stance, recently notifying sports teams and their executives that they could face prosecution for promoting unlicensed gambling businesses. A senior industry source further highlighted the political sensitivity of the issue, calling on Andy Burnham, the mayor of Manchester and a lifelong Everton fan, to condemn his club's deal.

Stake.com is one of the largest gambling companies globally, and there is no suggestion it is illegally targeting UK consumers or that it committed wrongdoing regarding the Everton partnership. The company did not respond to a request for comment but has previously stated it does not take UK bets and did not authorise its branding in controversial viral videos that triggered past regulatory scrutiny.

The demand for these sponsorship slots is likely to intensify. Starting in the 2026-27 season, the Premier League will implement a voluntary ban on front-of-shirt gambling deals. This restriction is already pushing licensed operators toward sleeve and training kit sponsorships, tightening the supply of visible advertising space just as the government moves to lock out unregulated competition.