Government Move on Shirt Sponsors Could Boost Licensed UK Operators

_{Richard Bradley is in support of DCMS consultation. (Image: Poppleston Allen)}

The UK government is preparing to consult on whether unlicensed gambling operators should be barred from sponsoring sports teams, a move that could reshape the commercial landscape of British sport and online betting.

The Department for Culture, Media and Sport, led by Culture Secretary Lisa Nandy, is expected to launch a consultation this spring focused on unlicensed operators whose branding appears on team kits and in stadium advertising. While some clubs may fear a hit to sponsorship revenue, licensing experts say the proposal could instead redirect spending toward UK-regulated firms.

Richard Bradley, a partner at licensing law firm Poppleston Allen, said the measure may offer domestic operators greater visibility.

“While the news that the DCMS is launching a consultation this spring on unlicensed operators’ sponsorship of sport teams in the UK may initially seem possible to have a negative impact on advertising revenue for clubs, it actually may provide fuller opportunity for British licensees to step in as sponsors.”

What Counts as ‘Unlicensed’, and Why It Matters

Under the Gambling Act 2005, any operator providing gambling facilities such as an online casino to consumers in Great Britain must hold a licence from the UK Gambling Commission. Advertising gambling services into the UK without the appropriate licence is also prohibited.

Some offshore operators, however, maintain that they are not acting unlawfully if their websites are not directly accessible from within Great Britain. In practice, consumers can sometimes bypass geo-blocking measures through tools such as virtual private networks, or VPNs.

Bradley noted that this grey area creates competitive pressure for licensed firms.

“The unlicensed sector is not necessarily illegal, if customers in the UK cannot access those websites, however, there are easy bypasses such as a VPN to do so, which takes revenue away from British operators.”

The UK Gambling Commission has repeatedly warned about the risks posed by the so-called black market, estimating that hundreds of thousands of British consumers may be using unlicensed sites. These platforms operate outside the UK’s regulatory framework, meaning they are not bound by domestic rules on player protection, safer gambling messaging, or dispute resolution.

Player Protection at the Centre of the Debate

Beyond commercial considerations, the proposed consultation reflects broader policy goals around consumer safety.

Bradley said restricting sponsorship to licensed operators would reinforce regulatory safeguards.

“Another benefit of the proposed ban is that it provides assurance for customers in the UK that marketing of gambling products via sponsorship is only for those appropriately licensed operators who are subject to the UK’s stringent regulatory standards.”

Licensed operators in Great Britain must comply with strict Licence Conditions and Codes of Practice set by the UK Gambling Commission. These include requirements on social responsibility, anti-money laundering checks, age verification, self-exclusion schemes such as GAMSTOP, and participation in alternative dispute resolution processes.

“This is also about customer protection as if legal advertising is only of British licensed products, there will be operational safeguards for players in GB, such as social responsibility controls and contractual protections,” Bradley said. 

“With the unlicensed sector, there is no guarantee of these sorts of vital player protections.”

The issue of gambling sponsorship in sport has already faced increased scrutiny. Premier League clubs agreed in 2023 to withdraw front-of-shirt sponsorship by gambling companies from the 2026–27 season, although sleeve and pitch-side advertising remain permitted. Any new restrictions on unlicensed operators would sit alongside those reforms and could further narrow the sponsorship market.

A Broader Push Against the Black Market

The government’s forthcoming consultation follows the 2023 white paper on gambling reform, which pledged stronger enforcement against illegal operators and greater oversight of online gambling. The UK Gambling Commission has since increased disruption activity, including issuing cease-and-desist notices and working with internet service providers to block illegal domains.

Bradley believes the sponsorship proposal sends a wider signal of support for compliant firms.

“Finally, the proposed ban also provides tacit support for the licensed gambling industry in the UK and could assist in countering the black market.”

The BGC also issued a statement as follows: 

Gambling Consultant Craig Morgan commented: "The government’s backing of a ban on Premier League sponsorships from gambling firms without a UK licence is a blunt measure that has the risk of merging illegal black market operators with legitimate, regulated international companies that just don’t operate in the UK. 

"Not holding a licence from the UK GC does not make a business unlawful? Treating all firms as rogue without the courtesy of due diligence is disproportionate, commercially damaging to UK clubs, and unlikely to address the real causes of black market gambling.

"Rather than targeting illegal activity directly, the policy restricts legitimate sponsorship, reduces competition, reduces tax paid and may push marketing money into less transparent channels, suggesting a reactive approach that has either not been fully thought through or is more political spin."

For sports clubs, the consultation could mean short-term uncertainty over sponsorship pipelines. For licensed operators, it may present an opening to strengthen brand presence in a tightly regulated market. And for policymakers, the debate underscores a central question: how to balance commercial realities in sport with consumer protection in an evolving digital gambling landscape.