UK Government proposes a ban on unlicensed betting operators sponsoring British sports teams: What does this mean for sports clubs and sponsors?

In its press release announcing the consultation, which was initially expected this Spring, the Department for Culture, Media and Sport (DCMS) stated that UK Ministers are “deeply concerned about the dangers posed by the unlicensed gambling markets” – which have lower regulatory oversight than in the UK – citing the risk that operators in these markets agreeing high-profile sponsorships with British sports teams draws fans towards sites that don’t meet the UK's regulatory standards.

Whilst the consultation is awaited and the results remain unknown, it seems the UK gambling industry is supportive, with a UK-based firm recently expressing public concern about a Premier League club’s ongoing deal with an unlicensed European operator.

What would the impact of a ban be?

While Premier League clubs have already voluntarily committed to removing gambling sponsors from their front-of-shirts by the end of the 2025–26 season, relegating them to sleeves, training-kit and other inventory, there are no formal restrictions on gambling‑sector partnerships.

The proposed ban, however, would change that, and would prohibit arrangements with gambling operators who have not been licenced by the UK Government entirely, reducing the potential pool of sponsors for clubs and sports teams.

What about existing arrangements with unlicenced operators?

Clubs and operators with existing arrangements should closely monitor the Government’s proposals and review the terms of their existing contract to understand their rights, should a ban come into force. Often, sponsorship agreements include provisions intended to apply in circumstances such as this, including:

• provisions allowing for termination where the arrangement conflicts with applicable law;
• provisions allowing the rights holder to grant alternative rights, where the original rights can no longer be provided (often referred to as “make-good rights”, though of course, clauses such as this may have limited benefit where there are no alternative rights on the table); and
• in some cases, provisions allowing for a reduction of future sponsorship fees, or even a refund of fees paid.

Having a clear understanding now of what might apply will allow for effective contingency planning.

What if the contract is silent?

Where a contract does not include a specific redress mechanism, there is a risk that the proposed ban would put clubs and sports teams in contractual breach if they can no longer provide the agreed rights. However, it is worth noting that remedies can exist outside of the four corners of the contract. For example, under English law, supervening illegality can "frustrate" a contract, meaning a party is absolved from ongoing performance where continued performance would be impossible or illegal (although frustration is very difficult to satisfy).

In addition, even where a formal contractual mechanism exists, it often relies on the parties reaching agreement on the relevant remedy. This could be problematic where clubs and sports teams may be keen to retain sponsors, but unlicensed operators might prefer to deploy their limited marketing budgets elsewhere, in less regulated sectors.

While formal disputes to resolve issues arising under or in relation to sponsorship agreements may be the last resort, it is always prudent to review what the contract provides regarding dispute resolution. Often there will be a requirement for parties to negotiate or mediate before initiating formal dispute resolution proceedings like arbitration. Understanding these procedures now avoids tripping up on them later.

Practical steps to take now

Whether or not a club, sports team or operator is impacted by the proposed ban, the consultation signals that the Government is placing greater focus on gambling-sector partnerships.

While precise details of the ban are unknown, there are steps that clubs and sponsors alike can take now, including: 

How we can help

The UK Government’s proposed ban represents a regulatory shift with consequences for clubs, sponsors and the wider sports marketing ecosystem. While the consultation remains forthcoming, clubs should act now to assess contractual risk, prepare contingency plans and review future sponsorship strategy in light of increased scrutiny of gambling‑sector partnerships.

If you would like tailored advice on your current or prospective sponsorship agreements, or would like support responding to the consultation, once published, our cross‑jurisdictional Sports, Disputes and Commercial teams are available to assist.

Authored by Charlie Chetwood and Jennifer Crust.