Impact of gambling sponsorships on the sports industry

The presence of gambling sponsorships in sports has become increasingly prevalent in recent times, as bookmakers and online casinos strive to expand their reach and market share through the world’s most viewed sports such as football, basketball, and formula 1.

This practice involves sports teams, events, and athletes forming partnerships with gambling firms to promote their brands and products. While such sponsorships offer financial advantages to sports organisations, concerns arise regarding their impact on the integrity of sports and the potential risks associated with problem gambling.

Below we will delve into the profound impact of gambling sponsorships on the sports industry with room for different layers. This guide is mainly football related.

What’s in it for the sport teams?

One obvious advantage of gambling sponsorships lies in the increased revenue generated. The growing interest in sports betting leads to higher demand for sports events and related merchandise. Consequently, ticket sales, sponsorships, and merchandise purchases rise, contributing to the financial success of sports teams and organisations. As gambling is still considered a grey area by many, sponsorships and other forms of advertisements by online casinos come with premium fees, which tend to be higher than for other industries. These higher fees have also pushed a lot of sports teams towards gambling sponsorships as there aren’t a lot of industries as lucrative for them as casino.

Another benefit is enhanced fan engagement via the deals. When fans see that their club teams up with a new company, they become more emotionally connected to that new company, resulting in higher engagement levels. This increased involvement translates into more social media interactions, higher TV viewership, and greater attendance at games and events. Online casinos and bookmakers are not only known for their shirt sponsorships, but also for their tv and social media campaigns which are meant to increase engagement with the sports team’s fan base and other sports fans.

Gambling sponsorships can aid in combating illegal gambling activities. By promoting legal and regulated platforms, governments and sports organisations can crack down on illicit practices, safeguarding athletes, fans, and the sport’s integrity. Some countries only allow their sports teams to sign deals with locally regulated operators.

For years, gambling sponsorships have served as a significant source of revenue for various clubs in sports leagues around the world, including the English Premier League (EPL), as betting brands typically offer more lucrative agreements compared to other sectors. Consequently, despite the ethical debates surrounding bookmakers, they have consistently maintained a prominent presence in English football.

Growing health concerns

While gambling sponsorships offer financial gains, concerns persist regarding their impact on the integrity of sports and the potential harm caused to individuals susceptible to problem gambling. A major concern revolves around conflicts of interest that may arise from gambling sponsorships, potentially incentivizing sports teams or athletes to engage in behaviour that undermines the best interests of the sport and its fans.

Additionally, there is a risk that vulnerable individuals might be encouraged to gamble excessively or irresponsibly, leading to negative consequences for their well-being and overall health. The overall aversion towards gambling also explains why some sponsorship deals by gambling operators are heavily criticised by fans of the club. Mohammed bin Salman, the owner of Newcastle United, recently announced his club will not sign any more deals with gambling operators as the industry does not fit their values.

Governments have started taking measures to address these concerns. The UK government, for instance, is tightening regulations by implementing a complete ban on TV advertisements featuring sports stars and personalities, scheduled to take effect in October 2023. The ban will likely extend to video game content to protect younger audiences from the potential harms associated with gambling.

The English Premier League has also announced a prohibition on front-of-shirt sponsorships starting from the 2026-27 season, though sleeve sponsorships will remain unaffected. This decision was reached through a majority vote by EPL teams. The UK gambling industry stands as one of the largest markets globally, with a revenue of $17.6 billion (£14.2 billion) in 2020. This figure further highlights the current concern within the UK regarding gambling addictions. A 2020 survey conducted by YouGov revealed that nearly 1.4 million individuals in the country are considered problem gamblers.

Conclusion

The issue of gambling sponsorship deals in sports is multifaceted, with valid arguments on both sides. On one hand, gambling sponsorships can provide substantial revenue for sports organisations, which can be utilised for initiatives benefiting athletes and fans alike. On the other hand, gambling addiction poses significant risks, leading to financial hardships, emotional distress, and other adverse consequences for individuals and communities. The risks of exposure to gambling related marketing campaigns are increasingly considered an attack on the public health systems, affecting sports teams.

Albeit lucrative, sports organisations across the world must carefully consider the potential harms associated with gambling sponsorships and weigh them against the possible benefits. Some sports teams have already distanced themselves from such sponsorships, and others may follow suit in the future. Ultimately, the decision to allow or restrict gambling sponsorships in sports lies with individual sports organisations, governing bodies, and governments. However, the well-being of athletes and fans should take precedence, with efforts made to mitigate the risks associated with gambling addiction. The best options for gamblers is to always consult the responsible play page before starting to engage in real money bets. Whilst sports betting is thrilling it can be harmful. Gambling operators that do team up with sports teams should always emphasise the risks associated with (online) gambling before they sign their deal with a new sports club.

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