Everton facing early termination of Stake sleeve deal as ban looms
Everton face losing a major sponsorship deal after the UK Government stepped up plans to ban any advertising of unlicensed betting companies.
The Department for Culture, Media and Sport has launched a consultation on preventing any betting brand that does not hold a Gambling Commission licence from promoting itself through sponsorship or advertising in any sector.
It has particular relevance for sport and, within that, football, where the UK unlicensed Stake.com retains a partnership with Everton.
Everton last week agreed a new multi-year deal with Stake to feature on the club’s shirt sleeve, having been forced to move the brand from the front of shirt position due to the Premier League’s incoming voluntary ban on betting companies in the main sponsor slot.
Other English top-flight clubs to feature unlicensed betting companies on the front of their shirts last season include Fulham and Crystal Palace, while others appeared on pitchside advertising boards at several clubs.
Why DCMS wants to ban unlicensed betting firms
Such deals would be illegal if the DCMS consultation results in a ban being passed, potentially costing clubs significant revenue. Unlicensed betting firms, which typically target Asian markets, have historically been willing to pay a premium for exposure in the Premier League.
DCMS said its plan were aimed at protecting consumers, defending the integrity of the licensed betting industry and cracking down on money-laundering opportunities.
“Under current legislation, businesses are able to enter into advertising and sponsorship arrangements with gambling operators which are not licensed by the Gambling Commission, so long as those operators’ services cannot be accessed by consumers in Great Britain,” it said.
“Unlicensed operators prevent access to their services by geo-blocking their websites. However, this can be circumvented by consumers using a virtual private network (VPN). This has become a particular issue over the past year in the sporting sector, particularly football, as the result of changes in the advertising landscape.”
Entain, owner of the licensed Ladbrokes and Coral brands, welcomed the consultation, with CEO Stella David calling it “another important step forward in tackling illegal gambling”.
She added: “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.”