EFL Under Pressure To End Sky Bet Deal
The English Football League is facing increasing pressure to end its title sponsorship with Sky Bet. Campaigners have called on the league to cut ties with its betting sponsor after it emerged last month that lower league clubs had been allowed to take a cut of fan losses with Sky Bet. A letter presented to EFL Chairman Rick Parry has been signed by cross-party peers.
MPs and peers signed the letter asking the EFL not to renew its partnership with Sky Bet. ©Dom Le Roy/Pexels
Legacy Affiliate Payments
The EFL has been told to end its long-standing partnership with betting sponsor Sky Bet. The popular sportsbook is the title sponsor of the EFL’s Championship, League One and League Two divisions. Its partnership with the EFL was first established in 2013, and is now the second-tier league’s longest-running sponsor.
In September, it emerged that clubs have been allowed to take cuts of fan losses with the bookmaker. That arrangement, which lasted six years, came to an end three years ago. However, it has been revealed that some clubs are still receiving legacy payments. According to the terms of the EFL’s partnership with Sky Bet, those legacy payments are set to continue until the contract expires in 2024.
Campaigners have raised concerns that similar affiliate deals could exist in the Premier League. A group of MPs and peers have written to EFL chairman Rick Parry calling for the sponsorship deal with Sky Bet to be terminated. The strongly-worded letter described the revelation of these legacy affiliate payments as “the last straw” in a relationship that has been allowed to go on too long.
Amongst those who signed the letter were Lib Dem peer Lord Foster of Bath, a former minister and the chair of Peers for Gambling Reform. Labour MPs Rebecca Long-Bailey, Sir George Howarth, Zarah Sultana, Dan Carden and Kim Johnson, and the SNPs Ronnie Cowan also signed the open letter.
The letter highlighted the large quantity of gambling profits that come from a small percentage of customers, a number of which will suffer from problem gambling. The letter’s authors described themselves as a group of parliamentarians committed to preventing gambling harm, adding that such treatment of EFL fans is tantamount to exploitation.
Public Health England estimates the number of gambling-related deaths in England at 409 a year. Campaigners for gambling reforms are concerned that the high level at which betting is promoted in football is putting fans at risk and normalizing harmful gambling behaviors.
Sponsorship Concerns
The group of MPs and peers was careful to point out that they do not blame football clubs as the main perpetuator of gambling harms. However, as Sky Bet sponsors the EFL, all 72 member clubs are required to promote gambling on players’ shirts, around stadiums and on club websites, whether they want to or not.
The letter has not asked clubs to repay any of the financial benefit from the arrangement, and stated that it does not want to stop fans from enjoying a bet on the football. Instead, it wants the EFL to end any legacy payments to clubs from its deal with Sky Bet, end the sponsorship when it comes up for renewal next year and find an alternative to a gambling partner.
The EFL commented on the situation last month, when evidence of the legacy payments first arose. It has not expanded on that statement, in which it explained that the affiliate scheme was discontinued for the 2019-20 season as part of its mission to put safer gambling at the heart of the partnership.
Sky Bet issued a similar statement, drawing attention to its commitment to making gambling safer. It has claimed to be the first operator to bring in strict limits on gamblers under the age of 25. The bookmaker also expressed its support for evidence-led measures that are set to be introduced in the government’s long-awaited gambling legislation reforms.
Sky Bet’s record for customer protections came under scrutiny earlier this year, as Sky Betting and Gaming was fined £1.17 million by the Gambling Commission. An investigation conducted by the regulator found that the operator had sent out promotions for 100 free spins to gamblers that had self-excluded.
Self-exclusion is an effective strategy for those recovering from addiction and attempting to mitigate their gambling activity. For operators, the rules are clear. Those who self-exclude must not be sent direct marketing that could tempt them back into gambling. The regulator did note that the fine would have been significantly higher had the operator allowed any of the self-excluded customers to actually gamble.
Sunak Named New PM
The calls for the EFL to sever ties with Sky Bet comes as attitudes towards gambling sponsorships in football grow increasingly hostile. Some campaigners have called for an outright ban on sports betting being promoted in English football.
EFL chair Rick Parry has rejected that idea, instead supporting reforms to make gambling safer. While top level clubs would be able to attract alternative forms of sponsorship, Parry says that a complete ban would have severe impact on the finances of smaller clubs that are still struggling to recover from the pandemic.
It is an issue that has also divided ministers, and it remains unclear what stance the Gambling Review white paper will take on betting sponsorships. It had been speculated that the decision to phase out sponsorships would be handed over to the Premier League, although the resignation of Prime Minister Boris Johnson put those plans on hold.
The white paper was due to be published this year, but disruption at the heart of the government means that its publication is likely to be delayed for a fifth time. Following the resignation of former Prime Minister Liz Truss on Thursday, after just 45 days in office, Rishi Sunak is set become the UK’s next PM.
While the process of choosing the new Conservative leader has been a swift one, Sunak will have to select a new cabinet. New cabinet members will then have to get to grips with their new roles and familiarize themselves with the Gambling Review, before it can be signed off.
Campaigners are still keen for the white paper to be published quickly, although rumors swirled during Truss’s leadership that it could be scrapped altogether. Gamban’s Matt Zarb-Cousin described the white paper as “oven-ready”, saying that it’s publication would be a quick and easy win for the incoming administration.
