Ministers are preparing to launch a crackdown on unlicensed casinos sponsoring British sports teams, responding to mounting criticism that regulatory delays have allowed offshore gambling firms to strike lucrative deals with Premier League clubs. A government consultation will be launched this week, according to well placed sources, following months of industry pressure to close a legal loophole that permits unlicensed operators to advertise through football sponsorships despite being barred from taking bets in the UK.
Progress on the proposals has stalled since February, when the Department for Culture, Media and Sport first announced a review would begin in spring. During that delay, Everton FC signed a three year sleeve sponsorship deal with crypto casino Stake.com, ignoring guidance from the Gambling Commission urging clubs to reconsider such arrangements. Stella David, chief executive of Entain, which owns Ladbrokes, had warned the gambling minister Baroness Twycross in early June that sponsorship agreements with unlicensed firms were likely being finalized. Her prediction proved accurate within weeks.
Stake effectively surrendered its licence to operate in Britain last year amid a regulatory review of its practices, including apparent brand promotion by adult entertainment figures. Days after Stake’s departure, the Gambling Commission warned sports teams and their executives could face prosecution if found to have promoted unlicensed gambling businesses transacting with British consumers. Stake maintains it does not accept bets from UK customers, exploiting a legal grey area that permits advertising without operational licensing.
Industry figures have called for prominent critics of gambling to condemn the Everton deal. One senior source pointed to Andy Burnham, the Manchester mayor and lifelong Everton supporter, who has been vocally opposed to gambling industry practices. Critics argue there is a glaring contradiction when clubs associated with anti gambling campaigners partner with unregulated operators. The prospect of political figures inadvertently promoting crypto casinos through club affiliation has raised concerns about the message being sent to vulnerable consumers.
In her letter to Baroness Twycross, viewed by media outlets, David warned that the delay risked football clubs interpreting government inaction as tacit approval to enter new sponsorship agreements. She urged officials to warn the Premier League that member clubs’ sponsorship deals might be cancelled mid season if the consultation results in a ban. David also claimed some unlicensed casinos were illegally accepting UK bets, profiting international criminal networks, depriving the Treasury of tax revenues, and harming vulnerable consumers. There is no suggestion these claims refer to Stake.com specifically or that the company has engaged in wrongdoing.
Stake was embroiled in multiple controversies before departing the UK market last year through its white label partner TGP Europe. A host of other brands, many targeting football viewers in east Asia, continue to sponsor British clubs despite lacking UK gambling licenses. Licensed operators argue this creates an uneven playing field where regulated companies face strict advertising restrictions while unlicensed competitors gain prominent exposure through Premier League partnerships.
The forthcoming consultation will seek expert opinion on proposals to prevent unlicensed gambling operators from sponsoring British sports teams entirely. How quickly the government acts remains unclear, but industry pressure and public scrutiny of offshore gambling promotion suggest regulatory ce is inevitable. For Premier League clubs, the financial appeal of lucrative sponsorship deals may soon clash with tighter restrictions designed to protect consumers and level the competitive landscape for licensed operators. Whether existing agreements will be grandfathered or terminated mid contract could prove one of the most contentious questions facing football executives and government officials alike.
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