Legal commentary from Richard Bradley, partner at licensing law firm Poppleston Allen, on the most recent news from Lisa Nandy & co.
While the news that the DCMS is launching a consultation this spring on unlicensed operators’ sponsorship of sport teams in the UK may initially seem possible to have a negative impact on advertising revenue for clubs, it actually may provide fuller opportunity for British licensees to step in as sponsors.
The unlicensed sector is not necessarily illegal – if customers in the UK cannot access those websites – however, there are easy bypasses such as a VPN to do so, which takes revenue away from British operators.
Another benefit of the proposed ban is that it provides assurance for customers in the UK that marketing of gambling products via sponsorship is only for those appropriately licensed operators who are subject to the UK’s stringent regulatory standards.
This is also about customer protection as if legal advertising is only of British licensed products, there will be operational safeguards for players in GB, such as social responsibility controls and contractual protections. With the unlicensed sector, there is no guarantee of these sorts of vital player protections.
Finally, the proposed ban also provides tacit support for the licensed gambling industry in the UK and could assist in countering the black market.
