In a move that has sparked widespread criticism, Everton FC has signed a three-year sponsorship deal with Stake.com, a crypto casino that relinquished its licence to operate in the UK last year. The controversy comes amid growing calls from the government and industry leaders for stricter regulations on unlicensed gambling firms sponsoring British sports teams. As the Department for Culture, Media and Sport (DCMS) prepares to launch a consultation on this issue, concerns are mounting that such agreements could undermine consumer protection and public trust in sports.
Government Action on Unlicensed Gambling
The UK government is gearing up to tackle the issue of unlicensed gambling operators sponsoring sports teams in the wake of Everton’s controversial deal. Following a pause in regulatory efforts since February, ministers are poised to consult with industry experts on potential measures to close loopholes that allow offshore casinos to partner with British clubs.
The delay in action has been met with frustration, particularly from Stella David, the CEO of Entain, one of the country’s largest licensed gambling firms. In a letter to Baroness Twycross, the gambling minister, David warned that unlicensed firms were likely finalising sponsorship agreements during this period of inaction. Her concerns were validated when Everton FC announced its deal with Stake.com just weeks later, disregarding the Gambling Commission’s advice to exercise caution in pursuing such contracts.
Industry Concerns and Reactions
Critics, including a senior source within the gambling industry, have urged Manchester Mayor Andy Burnham—an outspoken opponent of gambling—to publicly denounce Everton’s sponsorship deal. “Burnham has taken a strong stance against gambling since becoming mayor, yet his own club is now profiting from an unregulated company,” the source remarked. The prospect of the Prime Minister donning an Everton shirt emblazoned with a crypto casino’s logo has been labelled “outrageous,” further heightening the stakes of this controversial partnership.
Stake.com has been embroiled in several controversies prior to its exit from the UK market, including allegations of promoting its brand through questionable content. The Gambling Commission had previously warned clubs about the legal implications of endorsing unlicensed gambling businesses, but the law currently permits such sponsorship arrangements, raising significant questions about accountability.
The Consultation and its Implications
As the government prepares to launch its consultation, the aim is to gather expert opinions on how best to tackle the sponsorship of British sports teams by unlicensed operators. This comes on the heels of concerns raised by David regarding the potential for clubs to misinterpret the government’s inaction as a green light for new sponsorship agreements. She has emphasised the risk that these partnerships could be renegotiated or cancelled mid-season if stricter regulations are implemented.
David also highlighted the broader implications of unlicensed casinos operating within the UK, claiming they contribute to international criminal networks and deprive the Treasury of much-needed tax revenue. While Stake.com is one of the largest gambling entities globally, there is no implication that the company has engaged in illegal activities within the UK.
Regulatory Landscape and Future Outlook
The landscape of sports sponsorship is evolving, particularly with the advent of a new agreement between the Premier League and the government to voluntarily ban front-of-shirt deals with gambling companies. While clubs have begun to pivot towards sleeve and training kit sponsorships, the lack of restrictions on pitchside advertising remains a concern. The government has reiterated its commitment to addressing the issue, stating, “It’s not right that unlicensed gambling operators can sponsor some of our biggest football clubs, raising their profile and potentially drawing fans towards sites that don’t meet our regulatory standards.”
Everton FC has chosen not to comment on the situation, and Mayor Burnham has yet to provide a response.
Why it Matters
The sponsorship of sports teams by unlicensed gambling operators poses a significant risk to consumer safety and public integrity within the sporting world. As the government prepares to act, the outcome of the upcoming consultation could reshape the landscape of sports sponsorship in the UK, ensuring that clubs prioritise responsible partnerships and protect their fans from potentially harmful influences. This issue not only affects the teams involved but also resonates with a wider audience concerned about the ethical implications of gambling in sports.
