Report: Football shirt gambling sponsorship ban set to be dropped by UK government
Free bets ban and casino stake limits reportedly included in white paper as lobbying by football clubs and trade body bears fruit
The UK government will drop plans to introduce a ban on gambling sponsorships of football clubs as part of measures included in the forthcoming Gambling Act 2005 review, The Times has claimed.
Measures to bar football clubs from signing sponsorship deals with gambling operators had provoked controversy among football clubs still dealing with the financial impact of the Covid-19 pandemic.
Almost half of the 20 Premier League teams were sponsored by gambling operators last season, including West Ham, Crystal Palace and Newcastle.
In preparation for a potential ban, some clubs have already dropped their gambling sponsors, with Crystal Palace and Wolves the biggest names to do so.
However, others including Premier League new boys AFC Bournemouth and stalwarts Everton have signed front-of-shirt sponsorship deals with gambling sponsors in recent weeks.
The proposals had been the subject of intense lobbying by the Betting and Gaming Council and the English Football League, which previously suggested such a ban would be “catastrophic” for clubs, so these reports, if confirmed, represent a significant victory for the industry.
The Times suggests the government is targeting the signing of a voluntary agreement with football clubs concerning the usage of sponsorships, with the option of keeping legislation-led changes in its back pocket should these talks fail, a move which should placate those calling for a ban.
However, other reported changes should temper any notes of optimism in the sector, with the government also set to introduce a new gambling ombudsman which could potentially serve as a consumer champion for gamblers and act in disputes in cases of social responsibility breaches.
It comes after high-profile scrutiny of the Gambling Commission (UKGC) and its role as a regulator following the collapse of Football Index, and repeated reports suggesting it is not fit for purpose.
As a means of redressing this, the UKGC is set to be given new undisclosed powers and extra funding paid for by an increase in fees covered by the industry. The nature of these increases has not been revealed.
Plans for a mandatory levy on the gambling industry to fund research and treatment of addiction, based on the “polluter pays” principle, have been reportedly rejected by the government.
Other measures set for inclusion, the newspaper reports, include a blanket ban on free bets, as well as the introduction of maximum stakes of between £2 and £5 for online casino.
A requirement for operators to remove features from online games, which increase risk levels and potential losses for players, is also set for inclusion in the white paper.
Initial government estimates reported by The Times suggest that the industry could lose as much as £700m from the implementation of restrictions.
The land-based sector is expected to benefit from the white paper, with the government set to increase the maximum number of gambling machines in premises from 20 to 80, while also allowing casinos to extend credit to wealthy foreign nationals.
Melanie Ellis, partner at Northridge Law, said this would be “big news for the land-based sector if true”.