UK Government Changes Online Betting Advertising Regulations
The UK Government is about to make big changes in the lives of online gambling firms, but it is not only about poker, bingo, and casino websites; it affects sports-betting products too. Not only are Tax rules set to change, but advertising rules and regulations are also about to take a knock. Sports-betting online is one of the largest spend sectors of this industry, in a growth spurt that is being fuelled even more by the popularity of mobile gambling.
The impending UK Gambling Bill promises to have a substantial impact on sport sponsorships income too. This will affect football, rugby, and other sporting clubs/sectors that rely heavily on sponsorship income. Many of these sponsorships emanate from the shores of Asia.
It takes a great many specialists to keep the public interested in sports betting. This means getting the message across that these betting services are available online. It is advertising and the media that drive the gambling fan through these virtual doors, and these are expert services which cost a great deal of money. Budgets have become huge, and a great deal of money is being shared around.
Because much of this money is derived from Asian gaming firms, we find as many as fifteen out of twenty Premier League football clubs that enjoy Asian gambling firm sponsorship. The intent of the Gambling (Licensing and Advertising) Bill is to remove this source of income. Here we are not talking about change in controls, but the simple fact that sponsorship money will simply "disappear". The people who are set to take the biggest knock, are sports teams, and individual players themselves!
These new regulations are designed with the aim of creating "economic hardship" for Asian ops. In the future they will be required to prove to the Gambling Commission where they obtain their income, amongst other things. The other things also include proof of the fact of their entitlement to take bets from British jurisdictions. This type of “reporting” will mean exposing these operations to additional admin costs. The question is, will it be worthwhile for them?
A number of Asian online gambling firms are licensed in (pseudo) British offshore jurisdictions. Cost effectiveness will obviously be examined before pulling out of any British market-place, however the feeling is that sponsorships will be the first expense to get cut, and sports support to suffer as a knock-on effect.