Premier League football clubs have been warned it may be difficult to continue any sponsorship deals with TGP Europe brands and should therefore consider the termination of said agreements, according to lawyers within the gambling industry.
The white-label operator is set to leave Britain’s licensed gambling market following the conclusion of an investigation into the company by the Gambling Commission (GC).
TGP Europe was informed by the regulator it would have to pay a £3.3m fine for “failing to carry out sufficient checks on business partners and breaching anti-money laundering (AML) rules”.
Rather than accepting the sanction, the operator instead surrendered its licence and has shuttered operations in the UK market.
The ramifications of TGP Europe’s exit may be felt in the near future by several Premier League football clubs who are already entangled in various sponsorship deals with brands affiliated to the company.
Elizabeth Dunn, partner at law firm Bird & Bird, suggested these sponsorship deals may be “difficult to manage” moving forward.
She said: “This news is in line with the Gambling Commission’s recent focus on scrutinising B2B operators’ checks and controls in relation to the activities of their customers.
“It is clear that the Gambling Commission will not accept operators turning a blind eye to the activities of their partners.
“Any clubs continuing to advertise the brands of operators with no active British licence are now at risk of committing the offence of ‘advertising unlawful gambling’.
“While there are potentially ways that the clubs can continue to advertise the sponsor brands in a lawful manner, this may be difficult to manage in a world where the use of VPNs and other means to circumvent geo-blocking measures are widely known.”
AFC Bournemouth and Wolverhampton Wanderers both have front-of-shirt sponsorship deals with TGP Europe brands bj88 and Debet, respectively.
While not yet a Premier League team, Burnley – who are currently sponsored by TGP Europe’s 96.com brand – will play in the competition next season after securing promotion from the Championship.
Newcastle United also has sponsorship deals in place with Fun88, another operator which makes use of TGP Europe’s white-label services.
Elsewhere, Fulham are sponsored by SBOTOP, whose parent company Celton Manx relinquished its licence in the Isle of Man last week.
Dunn added that terminating the agreements should be an option considered by each club, even if an exit will be difficult to navigate.
She continued: “Each club will need to think carefully about whether they should continue the arrangement, what changes or additional assurances may need to be established and, if not, whether its agreement allows for termination in these circumstances.
“Unless the sponsorship agreement contemplated this scenario, it can sometimes be difficult to exit cleanly.”
The GC’s investigation into TGP Europe also found the operator completed insufficient background checks on the source of funds for business arrangements, in addition to carrying out ineffective due dilligence on each company involved in third-party ownership.
The operator had previously been fined £316,250 by the GC in 2023 for similar due dilligence and AML failings.
Anna Soilleux-Mills, partner at CMS law, explained the options the affected clubs have at their disposal moving forward.
She added: “The options available to the clubs are to remove the TGP brands as sponsors, either permanently or until the sponsor has obtained another UKGC licence.
“Neither of these options are particularly attractive, as it will take time for the brands to obtain a new licence (if they are even able to) and terminating the sponsorship altogether may have financial implications for the club, as these arrangements are lucrative for the clubs and may not be easily replaced.
Soilleux-Mills added that the clubs could also ensure that TGP Europe brands are inaccessible to UK players.
She continued: “If the brands’ websites are effectively geo-blocked such that a customer located in the UK cannot access and use the sites, then promoting the brand will not amount to advertising unlawful gambling.
“That said, the UKGC has made it clear they expect the clubs to be able to produce evidence that the geo-blocking is effective and cannot be easily circumvented. The UKGC has also warned it will be undertaking checks to ensure the sites remain blocked.
“It will depend on each club’s risk appetite and the assurances that the gambling sponsors can offer about their geo-blocking measures as to whether the clubs want to continue with the sponsors.”
Jordan Lea, CEO of gambling-related harm charity Deal Me Out, criticised the use of white-label sponsorship agreements in football.
Writing on LinkedIn, he said: “The marketing of nefarious operators on the front of football shirts via white-label loopholes is a stain on the Premier League.
“It is also a pertinent reminder that the marketing budgets of the black market are vast, and their appetite to do whatever they please through loopholes is even more so.”
Another TGP Europe-affiliated brand, Stake, the front-of-shirt sponsor for Everton, was ordered to leave the UK market in February.
The Merseyside club has continued to be sponsored by the crypto operator since its departure.
At the time, the GC warned Everton that its club officers “may be liable to prosecution and, if convicted, face a fine, imprisonment or both if they promote unlicensed gambling businesses that transact with consumers in Great Britain.”
“This action against TGP potentially marks the beginning of the end of white-label arrangements as we have known them, at least for Asian-facing brands,” Soilleux-Mills added.
“The model has been under increasing scrutiny in the last few years and, whilst white label arrangements continue to be legally possible, at least for now, those offering white label arrangements are likely to reassess whether the compliance burden and risk is worth the reward.”
EGR has reached out to each club comment.
The post Premier League clubs should cut ties with Asia-facing operators, warns lawyer first appeared on EGR Intel.
Bournemouth, Wolves, Newcastle, Fulham and Burnley left in limbo following departure of white-label operators from the UK market
The post Premier League clubs should cut ties with Asia-facing operators, warns lawyer first appeared on EGR Intel.