Home » English Premier League » What’s Causing Premier League’s Increase in Gambling Sponsors, and What Risks Do Clubs Run by Signing Them?

What’s Causing Premier League’s Increase in Gambling Sponsors, and What Risks Do Clubs Run by Signing Them?

Corporate society has always been drawn to football due to its popularity and strong influence. Among the many businesses participating, the gaming sector struck a significant sponsorship agreement with football clubs, forging a long-standing and solid bond.

Despite the fact that these sportsbook or casino providers and sporting stakeholders have united as brothers in arms, it’s important to examine how this came about. As a result, this article begins with the history and concentrates on the steady prevalence.

There’s a strong emphasis on the advantages that each party receives from participating betting and gambling agencies.

The amount that clubs receive as a result of these sponsorships is another topic of dispute. We consider the potential risks a club can encounter by entering into an arrangement with gambling companies rather than just focusing on the favorable aspects.

History of English Football’s Gambling Sponsorships

The earliest instance of a partnership between gaming companies sponsoring football may be found in the early 1990s, specifically 1992, according to the chronology of gambling sponsorships.

Stoke City, who were sponsored by the well-known “Betting &Racing Exchange”, was the first team in the EPL to ever take part in such a contract.

Records showed that as more nations pushed to legalize all types of Internet gambling, including sports betting, a contract was signed by more companies. Many clubs used to have a collaborator in the gambling industry by the late 1990s. Aston Villa, Manchester City, Chelsea, Arsenal, Ipswich, and Liverpool were a few of them.

How Gambling Has Been Entangled with Football

These alliances between gaming companies and football clubs are common in practically every international league. Thanks to the fans, this link has produced fruit that is good. It’s not unusual to come across footballers who bet on and predict games out of a pure passion for the sport. However, there have been complaints about the situation’s morality from various corners.

The relationship between gaming companies and football teams has prospered as a result of the supporters’ widespread acceptance.

While the majority of spectators use their enthusiasm for the games to anticipate and wager on games, bookies have elevated the deals.

In an effort to get more of their fanbase to wager, football players and teams have currently taken on the roles of the faces of these betting companies.

Some stadiums are also being christened after the companies as payment in return. The progression in society’s acceptance of gambling is evidenced by this synergy.

The State of Casino Sponsorships and Gambling Currently

Even while these agreements are becoming more and more popular, they have encountered fierce opposition. In some regions, there’s a significant danger associated with iGaming sites sponsoring clubs, especially in light of an impending prohibition.

Analysis shows a staggering 48-percent decrease in the total amount of gaming brands engaging in sponsorship and branding of the front jerseys between 2019 and 2022.

Before 2023, the UK government was debating steps to impose a restriction on betting advertisements. The major clubs competing in the English Premier League, such as Liverpool, Arsenal, Chelsea, etc., still are widely supported by brands, despite efforts by certain clubs to avoid branding front shirts.

Global football analysts remain upbeat about the prospects of these agreements. For instance, the organization in charge of Major League Soccer in the United States takes contracts from various gaming businesses, including casino operators.

They aim to include a wide range of people, from Texas residents to Michigan residents. This is so that everyone who attends the big game may experience the special atmosphere that makes football the most watched sport in the world.

Nowadays, more football supporters and admirers bet more than they did in the past. This trend is still in its infancy and is anticipated to grow more in the next few years.

It’s difficult to predict that the EPL will completely wash its hands off of these endorsements given that it has grown to be very valuable as the collaboration expands in other jurisdictions.

How Much Money Do Clubs Get?

The majority of football teams have an unspoken agreement that they never disclose the financial compensation they receive. For the mutual benefit of both parties as well as the Federation, such a portion of the agreement is kept private.

However, based on evaluations from our specialists and media reports, educated assumptions can be made.

These sponsorship agreements are estimated to be worth £90 million yearly. Although it’s conceivable to believe that this number is inflated, we think it’s quite accurate given that many EPL teams are sponsored by brands.

This sum may be ascribed to the way that businesses and individual gamblers fund the expansion of lesser sports leagues, particularly those with sponsorship agreements.

What Are the Clubs’ Benefits?

There are other factors or reasons why a team will decide to take gambling and casino sponsorship with a suitable brand in addition to the cash compensation.

Here are the EPL teams that benefited from having betting companies sponsor their jerseys:

It’s well known that the size of a club’s fan base is a key indicator of how successful it is. Cooperation like this has been found to assist clubs in expanding into new areas that would have initially been difficult.

For instance, the majority of betting organizations now promote team tickets and offer partial rewards to areas that might be totally engaged in football or the team.

Numerous gambling establishments also take part in social and corporate responsibility initiatives. IGaming companies’ offers to construct additional public areas inside and surrounding stadiums serve as a prime illustration.

What Dangers Await Clubs?

All parties involved stand to gain greatly from this, yet there are also substantial risks. First, those who oppose such agreements now prioritize moral obligation. Additionally, if a club’s sponsor is associated with any issue, the club may suffer reputational damage.

It can tarnish the club due to their collaboration. Facts show that the iGaming sector makes up 9.2% of all jersey partners for the Premier League, closely followed by the automotive sector at 10.5%.

Even if there are yet other sizable dangers, we think all clubs should take this into account and make sure they are covered by a contract clause by having it reviewed by their legal teams. This shields them from further legal action or public humiliation.

The Future of Football Betting Sponsorships

Regarding the future of such alliances, particularly in the English Premier League, there is no definite statement.

In order to avoid regulatory penalties, gambling enterprises can be substituted as associates in the future. Sponsorships from gaming businesses have recently grown to be a significant source of cash for clubs.

Particularly for the transfer market, this is clearly reflected in the budget. Teams have the opportunity to attract great players, significantly increasing revenue, which is advantageous for all parties involved, including the football organization.

This trend might therefore not be changing anytime soon. Both sides have enormous advantages and visibility, which will lead to opposition and demand on the government when it tries to impose bans. The UK exports a lot of football, so any attempt to stop that might spark protests and controversy.