Logo a no-go: The changing face of gambling sponsorships

The gambling industry is in a state of flux. The Gambling Act 2005 review looks set to have far-reaching implications on the sector in the UK – not least when it comes to both advertising and sponsorship. The white paper is now expected in May and could see gambling firms having to make some tricky marketing decisions, especially being so close to the start of a number of sporting calendars and at a time when many new deals may well have already been agreed or current ones renewed. The review is considered by some as necessary to regulate the industry across a number of areas, however, one area that is seen as vital for reform is the level and prevalence of sponsorship and advertising within sport. In 2019, the Betting and Gaming Council (BGC), which counts Flutter, Entain, bet365 and William Hill among its members, introduced a whistle-to-whistle ban implementing a blackout on advertising during televised football matches from five minutes before kick-off to five minutes after full time. Despite the industry trade body declaring the initiative a success, including a BGC report published in January 2021 which revealed that in its first year the self-imposed ban had slashed the amount of TV gambling adverts viewed by four- to 17-year-olds by 97%, for some it was too little too late. On 8 December 2020, the Department for Digital, Culture, Media and Sport (DCMS) announced its intention to review the Gambling Act 2005 with its main aim being “the protection of children and vulnerable people in a fair and open gambling economy which is also crime free”. The 2005 Act had liberalised gambling in the UK with one of the main outcomes permitting the industry to advertise its products on television, radio and through other outlets. As a result, the review will no doubt take this into account and there is every chance it will come down hard on marketing and sponsorship deals.

The boom years

Since 2006, the World Snooker Championship has been sponsored by betting companies after legislation in 2003 banned the sponsorship of all sporting events by tobacco companies and, thus, ushered in the boom era for gambling companies to swoop in and fill the vacated space. Offering brand placement on prime-time BBC for 17 days, the World Snooker Championship is an event coveted by many in the betting industry. Betfred has partnered with the tournament on two separate occasions from 2009-2012 and 2015-2022. A deal struck in 2020 took the sponsorship until at least this year’s championship, running from 16 April to 2 May, however, with the tournament’s end date coinciding with the same month the white paper is expected, it will be interesting to see whether the option on the contract for another year will be taken up. If snooker was the first real attractive proposition, next was the PDC World Darts Championship. First sponsored by Ladbrokes in 2003 (discounting the 1996 event that was sponsored by then Ladbrokes subsidiary Vernons) when it was still held in the smoky, cramped and rowdy atmosphere of the Circus Tavern. It was not initially that jewel in the crown that it is now. The tournament moved to North London’s glamorous Alexandra Palace in 2008, rejuvenating the event as a festive spectacle. In 2012, Ladbrokes walked away from its sponsorship, a decision that sparked a bidding war among betting companies. One former top-tier industry CMO spoke to EGR on Lads’ decision to withdraw from the agreement: “I couldn’t believe it when Ladbrokes decided to end its sponsorship. The PDC World Championship was the one I always wanted, and I wasn’t the only CMO who felt that way. I viewed it as the perfect way to ‘own Christmas’. “Everyone receives their new iPhone, tablet, laptop and most are off work watching the darts. The sponsor’s logo is everywhere you look. I love the occasion, the drama, the atmosphere and from a branding perspective you have to love seeing the brand front and centre.”

The end of the boom?

The 2021 World Championship marked the end of nearly two decades of betting sponsorship as William Hill stepped aside and opened the door for online car retailer Cazoo to add to its burgeoning portfolio of sports sponsorships. Liam McKee, William Hill director of media, sponsorships and UK creative, said at the end of the deal: “We took the decision not to renew the sponsorship after a review of our sponsorship strategy, and with our contract coming to an end, we thought it was the best time to look at other opportunities.” The decision was probably an easy one to make. A multi-year renewal at £2m per year would have been quite the white elephant should wholesale sponsorship alterations be introduced on the back of the government review. In the last 12 months, Cazoo has entered into multi-year, multi-tournament deals with Matchroom for both snooker and darts tournaments that are traditionally sponsored by gambling companies including the Masters snooker, formerly sponsored by Betfred, and the Grand Slam of Darts, previously under BoyleSports’ moniker. So, what are the bookies thinking? When asked whether the prospective publishing of the government’s white paper and the potential changes it could bring was the reason for ending major sponsorship deals, Simon Cleaver, senior sponsorship manager at William Hill, said: “The critical part here is potential. We are conscious the Gambling Act [2005] review is on the horizon, and we will study the white paper when it’s ready and, of course, comply with any new regulations concerning sponsorship and marketing.”

Counter-attack

Football and betting have long had an uneasy relationship and it could be argued that the prevalence and prominence of the activity within the nation’s biggest sport has accelerated the need for the review. On the one hand, the money that clubs and competitions receive through affiliations with betting companies has provided extra revenue streams through sponsorships and partnerships, although critics will point to increased advertising leading to the normalisation of the industry to children. The 2021/22 Premier League season kicked off with nine teams’ shirts bearing betting logos. On top of main sponsorship roles, there are also clubs with betting partnerships giving firms access to exclusive content, social media presence and perimeter board branding. Norwich City is the only team without a relationship with a gambling company, discounting a DraftKings DFS deal. With the average partnership entitling 10 minutes of LED board exposure per game for the partnered brands, that means a regular 10-match game week in the Premier League could see up to 200 minutes of betting advertising (based on those teams with the most partnerships or sponsorships – Leicester City has four regional betting partners, Spurs have three). The industry’s relationship with football started to deteriorate long before the review was even a dot on the horizon. Having successfully sponsored the Scottish Cup and partnered with the Scottish FA, William Hill became an “official supporter of the England National team” as well as the official betting partner of the FA Cup. An uneasy truce started almost immediately with the governing body hyper-protective of its brand and almost willing the British bookmaker to remain a silent partner despite the £6m-a-year deal. Access to assets, included as part of the partnership, became increasingly difficult and Hills complained that perimeter board and backdrop branding became null and void when playing in FIFA and UEFA competitions as the international governing bodies already had their own partners. The partnership did, however, see the bookmaker and governing bodies north and south of the border sign integrity agreements. With Hills deciding that it wished to step away from the deal in 2016, Ladbrokes signed a doomed long-term deal which was cut short before 12 months had even elapsed. Joey Barton’s admission to a gambling problem, and subsequent 13-month ban from football for breaching FA rules, led to the governing body reviewing its relationship with gambling and permanently severing ties with all betting companies. With sponsorship changes maybe in the pipeline, the CMO reflected on how gambling companies could have used their sponsorships and partnerships differently to avoid becoming a pariah in the court of public opinion. “There was constant criticism that the FA had entered into deals with betting companies, and it would have taken a lot to swing that negative perception.” With possible changes in the offing in the very near future regarding sponsorships and partnership, the unnamed CMO said there will be regret that things were not done differently. “We all could and should have done a better job of using sports sponsorships as a way of communicating responsible gambling and player protection. “I look at Heineken in Formula 1 pushing their 0.0 brand and a zero tolerance to drink driving or Guinness talking about 0% Guinness during the Six Nations as brilliant examples of sponsorships driving brand awareness through responsible messaging.”

So, what now?

With the review well underway, it seems the industry is at an impasse. Alex Donohue, formerly of Ladbrokes and now MD of Press Box PR, whose clients include regulatory experts and operators with global sponsorship portfolios, believes that change is well on the horizon. “One unintended consequence of a potential sponsorship ban in the UK could see operators increase their activity with teams and leagues in markets with less stringent conditions outside of the UK, diverting funds outside of the [country].” With markets in North America and Latam embarking on their licensed gambling journey, the opportunity for brand awareness in an infant market is huge. In the last few weeks, Betway, the primary sponsor of West Ham, announced partnerships with five sides in Chilean football’s first division. Elsewhere, Betfair secured title sponsorship for a number of competitions in Brazil, while bet365 expanded its deal with UFC, which allows the firm behind-the-scenes action while tapping into the mixed martial arts organisation’s social media channels. Cleaver insists that Hills will continue to look at all sponsorships on a case-by-case basis, remaining positive for the future, although he admits that darts, snooker and football may be replaced in the sponsorship stakes. “I don’t think it’s right to say ‘traditional’ sponsorships are becoming less appealing. It’s more ensuring we develop a portfolio that enables us to engage with our customers regularly. This can take several forms, less traditional sports, entertainment or simply through engaging content across other marketing channels.” And he isn’t wrong. One area that looks increasingly inviting is esports. In March 2021, PSG Esports announced a six-figure extension to its official principal sponsorship of its Dota 2 team with Betway, while 1xBet inked a partnership deal with ESL Gaming. Cleaver insists new brands and industries entering the sponsorship arena is not a bad thing, yet stated there isn’t a conscious focus on withdrawing from previously traditional sponsorship sports. “Having the likes of Cazoo and [rival online car retailer] cinch entering the sports sponsorship landscape has been very refreshing and forced us to think differently about what we want to get out of our sponsorships. Where and what can we look to do? Well, you’ll have to wait and see!” And that we will. It will be a tricky time for sponsorship teams within the industry between now and the publishing of the white paper. It is safe to say we can expect some restrictions on gambling sponsorship within the review but to what extent remains up in the air, and that is a tricky road for the industry to navigate over the next few months. It is clear firms have already started to shift their sponsorship focus, but it remains to be seen which brands can move with the times and who will get left behind.