The UK has said it will clamp down on gambling companies that are not licensed in the country from sponsoring sports teams. The new rules could affect several esports teams that have partnered with offshore gambling platforms. 

The government announced that it will look to implement the ban as part of a wider crackdown on illegal gambling. A statement released on the government’s site noted, “Ministers are deeply concerned about the dangers posed by the unlicensed gambling market, which has been linked to organised crime.” 

“Unlicensed operators do not adhere to laws and guidelines designed to protect customers, including mandatory financial vulnerability checks, responsible advertising, and fair terms.”

Sports Teams Partnerships With Unlicensed Companies

Until now, sports teams could make sponsorship deals with companies even if they did not hold UK licenses. That includes Premier League soccer clubs and esports teams. 

The government noted, “Clubs are currently not acting unlawfully in maintaining these sponsorship arrangements as long as the gambling operators are not accessible to UK consumers.”

Stake has continued sponsoring Premier League side Everton FC, with its name appearing on the team’s jersey despite losing its license last year. The online casino also sponsors esports organization Team Vitality, which has competed at events in the UK. 

Under the new measures, the team may be forced to remove promotions at events in the country. BLAST also announced a deal with Polymarket last week, which is blocked in the UK. Whether the new rules would prohibit the promotion of the prediction market platform remains unclear. 

For now, the government has only announced that it will launch a new consultation on sports sponsorship this spring. As yet, no clear rules have been introduced. 

Task Force Tackling Illegal Gambling

The announcement comes as part of the UK’s attempts to clamp down on unlicensed operators. In addition to the consultation on sports sponsorships, it has set up a task force targeting illegal gambling. 

One of its aims is to stop companies from advertising on social media. Gambling Minister Baroness Twycross is leading the task force, which said it is working with TikTok and Google to remove promotions. 

In addition, it is collaborating with MasterCard and Visa to prevent payments to unregulated platforms. 

Culture Secretary Lisa Nandy said the new measures were primarily aimed at stopping Premier League clubs from partnering with unregulated gambling companies, but they could have financial implications for many sports organizations, including esports event organizers and teams.