There is currently a loophole in the UK gambling industry that allows for overseas bookmakers and betting sites to partner with a ‘white label’ operator on domestic soil.
The upshot? Unlicensed, offshore firms are able to secure a shortcut into the UK market, advertising to punters despite not having to go through the same safety checks and standards as licensed operators.
But if a speech given by the gambling minister, Fiona Twycross, this week is anything to go by, that loophole could be closed in the near future.
Not All White
Speaking at GambleAware’s annual conference, Twycross touched upon a number of subjects pertinent to the industry.
White label partnerships were very much in her crosshairs, with the minister promising ‘further action’ will be taken if it was felt that overseas firms were taking advantage of the industry workaround.
Confirming that the government’s Department of Culture, Media and Sport had already met to discuss offshore betting, Twycross revealed that the proliferation of white label firms ‘using football in this country to advertise to consumers outside of Great Britain’ had not gone unnoticed.
“The Gambling Commission and industry will gather further evidence of their prevalence and impact. If further action is needed, we will take it,” she continued.
At the time of writing, eleven Premier League football clubs have a gambling firm as their front-of-shirt sponsor. Of those, only two – West Ham’s sponsor Betway and Brentford’s Hollywood Bets – are directly licensed to operate on UK soil.
Otherwise, Betano is a white label of BetVictor, while Net88 – the sponsor of Crystal Palace – has leveraged a partnership with Risq Capital. Stake.com uses TGP Europe, who have also offered white labels to DuelBits and SportPesa, who have sponsored Aston Villa and Everton respectively.
Welcome to Palace, @net88eng ❤️💙
NET88 will feature as the men’s official front-of-shirt sponsor for the 2024/25 season.
— Crystal Palace F.C. (@CPFC) June 12, 2024
These are just some of the examples of white label partnerships in British football, and provide an explanation as to why the Premier League has opted for a voluntary ban on gambling sponsors from 2026.
A white label firm on UK soil will use their approved licence to partner with an offshore firm, who aren’t allowed to offer betting services to British customers directly, but they are allowed to advertise via the UK market.
And with a global audience of hundreds of millions tuning into the English Premier League, sponsoring a UK club – with no intention of operating on British soil – is a unique way to score more customers overseas.
One issue, however, is UK-based punters signing up for a black market firm after seeing them advertise their wares during a Premier League game – these bookmakers are unlikely to have to operate to the same high standards if they only carry a Curacao licence… and they may not guarantee the protection of their customers’ account money, either.
An investigation into white label partnerships by Play the Game received a strange response from the UK Gambling Commission, who claimed that the activity of overseas firms with a white label agreement was the ‘responsibility’ of the licensee, and not the regulator themselves.
Subtracting the Ads
In her speech, Baroness Twycross also hit upon the subject of gambling advertisements on TV and other forms of media.
Currently, there is no law preventing gambling firms from advertising on television. As long as their messages conform to Ofcom standards, a bookmaker or casino can directly promote their services to anyone watching.
The only caveat is with live football broadcasts, where a ban on ads from ‘whistle to whistle’ is in place.
But some campaigners believe that doesn’t go far enough to prevent children and the vulnerable from seeing gambling ads – as Twycross alluded to in her speech.
“We know that people can feel they are being inundated with gambling messaging – and this can be especially true whilst watching sport,” she said.
“And we know that people are particularly concerned about the potential impact on children and young people.
“It is my expectation that industry can and should do more to work together, with each other and with us, to ensure that gambling advertising and sponsorship is appropriate, responsible and does not exacerbate harm.”
The minister then went on to insinuate that betting firms’ own safer gambling messages aren’t enough, and that a more holistic approach – including academics and sporting bodies – might be introduced to create new rules on how betting firms can advertise in UK media.
However, Twycross stopped short of saying that the government was planning new laws as part of their industry overhaul, and that ‘I do not stand here today to tell you what that volume [of adverts] must be.’