Entain has become the latest company in the United Kingdom to urge the government to deliver on a plan to ban unlicensed gambling companies from becoming sponsors of local sports teams and exploiting other legal loopholes.
Presently, the government is launching a consultation that will seek input from relevant stakeholders before a decision and potential enforcement action may be taken into place.
Entain Chief Executive Stella David has both urged action while criticizing the fact that such partnerships may still exist, pointing out the harmful effects from these arrangements on vulnerable customers, UK tax, and ignored safeguards.
“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.”
Entain argues that these sponsorships not only raise awareness for brands, but also actively cannibalize the regulated market. Citing research by the Betting and Gambling Council, Entain noted that nearly half of the gambling advertising in the UK came from unlicensed operators, with £800 million of advertising spend.
Illegal gambling remains an issue, with operators the main culprits to blame, as they resort to rogue practices such as cloning legitimate operators’ websites and trying to mislead customers through affiliate marketing, social media push and online advertising.
Entain says the time to act is right now
Thus, taking action sooner rather than later is important, argues the company, calling for a ban on sponsorships on shirts, but also measures that go well beyond this and actively seek to address the root cause of the issue.
“Today’s consultation represents a significant step forward, but it also highlights the need for a broader strategy. The Government has correctly identified the risks associated with unlicensed gambling sponsorship in sport, yet many of these same operators continue to reach consumers through online channels. Sponsorship restrictions should not become a substitute for tackling the wider digital ecosystem that enables illegal gambling operators to grow their presence in Great Britain.”
In the same stride, Entain has also urged Richard Masters, the Premier League’s chief executive, to pass a voluntary ban on sponsorship and advertising by unlicensed gambling operators ahead of the upcoming season.