The UK government is set to launch a long-awaited consultation this week to ban unlicensed gambling operators from sponsoring British sports teams, according to well-placed sources. The move comes after criticism that delays in the review allowed offshore gambling firms to strike lucrative deals with Premier League clubs, including Everton FC's three-year sleeve sponsorship with crypto casino Stake.com.
Background of the Consultation
Progress on plans to remove unlicensed gambling operators from football has stalled since February, when the Department for Culture, Media and Sport (DCMS) announced a review would begin in the spring. The consultation, now scheduled for this week, aims to close a loophole that currently allows unlicensed casinos like Stake.com to sponsor British clubs, despite warnings from the Gambling Commission.
Stella David, chief executive of Ladbrokes owner Entain, wrote to gambling minister Baroness Twycross in early June, urging swift action. She warned that sponsorship agreements with unlicensed firms were "surely now being finalised." Her concerns were validated weeks later when Everton FC signed a three-year sleeve sponsorship deal with Stake.com, ignoring Gambling Commission guidance urging clubs to reconsider such deals.
Criticism and Calls for Action
A senior industry source called on Andy Burnham, a lifelong Everton fan and vocal critic of the gambling industry, to condemn the deal. "Burnham became stridently anti-gambling when he became mayor of Manchester, but his own football club is taking money from an unregulated gambling company," the source said. "We face the prospect of our prime minister wearing an Everton shirt and becoming a billboard for a crypto casino, which would be outrageous. He should condemn the Everton deal in the strongest terms."
Stake effectively surrendered its UK licence last year amid a regulatory review, including an investigation into apparent promotion of the brand by porn actor Bonnie Blue. The Gambling Commission subsequently warned sports teams that they and their executives could face prosecution for promoting unlicensed gambling businesses that transact with British consumers. Stake says it does not take bets in the UK.
Impact on Football Sponsorships
The law does not currently prevent unlicensed casinos like Stake from sponsoring British clubs, leading to a proliferation of brands targeting football viewers, particularly in East Asia. The government consultation will seek expert opinion on proposals to close this loophole. The long-awaited review comes a month after Entain's CEO issued her warning, noting that the delay "raises the real and imminent risk of football clubs interpreting the absence of government action as a green light to enter into new sponsorship agreements for next season."
David called on the government to warn the Premier League that sponsorship agreements might be cancelled mid-season if the consultation results in a ban. She also warned that some unlicensed casinos illegally take bets in the UK, claiming they "profit international criminal networks, deprive the Treasury of tax revenues and have a detrimental effect on the wellbeing of UK consumers."
Stake.com Controversies
Stake.com, one of the world's largest gambling companies, was at the centre of multiple controversies before leaving the UK last year when its white-label partner TGP Europe gave up its licence. The Gambling Commission had launched an investigation into why Stake's branding appeared in a video by Bonnie Blue, where she boasted of a stunt involving "barely legal 18-year-olds." Stake's branding has also appeared on other viral videos featuring violence and graphic images.
Stake has previously told the Guardian it did not consent to the use of its logo by these content creators. The Guardian also revealed controversial practices by Stake, including a promotion offering a $10 "free" bet to anyone wagering $5,000 in a week. Everton subsequently told the brand not to use club imagery in the promotion, though the wider partnership continued. An Observer investigation in 2022 uncovered concerns about British customers easily betting with cryptocurrency on the site, despite crypto gambling being illegal in the UK. Stake said it adhered to rigorous anti-money laundering and safer gambling processes and shut down customers bypassing controls via VPNs.
Future of Sponsorships
Stake previously sponsored the front of Everton shirts, but the 2026-27 season will mark the start of a voluntary ban on front-of-shirt deals with casinos and sportsbooks, agreed between the Premier League and the government. This has led operators to sponsor shirt sleeves and training kits instead, while pitchside advertising remains unchanged.
A government spokesperson said: "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. That is why we are looking to ban unlicensed operators from sponsorship deals in British sport and our consultation on the matter will go live soon."
Everton FC declined to comment, and Andy Burnham did not return a request for comment.
