Premier League Clubs Face Revenue Losses as Gambling Sponsorships Are Banned

Approximately 58% of Premier League clubs are expecting to suffer large financial losses, according to recent OLBG study. Clubs could lose a total of £126.6 million ($168 million) beginning in the 2026–2027 season as a result of the impending prohibition on casino sponsorships and front-of-shirt gambling. How to make up for this loss before the new restrictions go into force is a critical challenge.

An agreement has been struck by the UK government to do away with sponsorships for gambling on the front of shirts. Eleven of the nineteen Premier League teams that currently receive funding from casinos and gambling firms will be impacted by this move. Interestingly, Chelsea is the only team that does not now have a sponsor on the front of the shirt. But as rules become more stringent, the team would soon need to reevaluate its sponsorship approach.

Currently, these front-of-shirt agreements contribute approximately £428.1 million ($570.2 million) to the 11 affected clubs in the ongoing season. Alarmingly, around 30% of this income comes from gambling brands and casino operators.

The Value of In-Person Advertising

The OLBG’s 2023 Gambling Study highlights that the average gambler spends £27.98 ($37.26) weekly, with 86% of football fans engaging in occasional betting. This data allows OLBG to estimate the advertising value of front-of-shirt sponsorships based on match attendance alone. However, these figures do not account for the additional impact on home viewers, which significantly enhances the value of such sponsorships.

Over 6.7 million spectators attended the home games of the clubs that are currently associated with gambling companies in the 2023–2024 season. Betway is the most notable of these collaborations; it has sponsored West Ham for around £63.8 million ($84.9 million).

In a related development, Betway agreed to be prominently displayed on the LED advertising boards during all home games and became Chelsea’s official European betting partner earlier this month.