bookmaker sponsorships
bookmaker sponsorships

In Europe, major football venues differ in sports betting legislation. A notable difference is in relation to the bookmaker sponsorships to clubs, with variable permissions between centres.

In European Union legislation, there is no specific sector for the betting service, and each country is free to organize it. Most allow internet gambling of some types, although there are differences between countries, with some allowing all types of betting while others only allow betting, poker and casino games.

To better understand this scope of betting rules, the ge portal published an article portraying the main differences in the legislation of European countries with bookmaker sponsorships.

Bookmaker sponsorships in European leagues: see rules

The main centers of football in Europe have several differences in the regulation of sports betting, especially in what is allowed or not in the sponsorship of bookmakers to clubs. The ge brings below information on the subject, whose rules are under discussion in Brazil.

There is no specific field in European Union legislation for the betting service. Each country has autonomy to organize it. Most allow certain types of internet gambling. Some allow everyone, while others only allow betting, poker and casino games.

Spain: regulation in 2011

The betting market was regulated in Spain in 2011. The national body to regulate the sector and issue licenses to operators is the Directorate General for the Order of the Game (DGOJ).

In October 2020, the Spanish government warned that LaLiga clubs would have to end advertising partnerships with bookmakers by the end of the 2020/21 season. At that time, seven clubs had shirt sponsorship, as well as the league. The regulation of online betting advertising came through the Garzón Law, in August 2021.

Clubs were prohibited from signing contracts involving advertising on uniforms, stadium names and competitions.

LaLiga has a technology that can display bookmakers only in international broadcasts. The Spanish league, for example, cannot give visibility to the Codere bookmaker (its partner) nationwide, but manages to serve Rushbet in Latin America.

Questioned by ge, LaLiga did not comment on the impact of changes in the rules of this type of sponsorship on the collection of clubs.

Italy: real-time monitoring

Italy was the first member of the European Union to legalize, license and regulate online betting, in 2006. The number of licenses issued by the national regulatory authority for companies to operate in this market (valid for nine years) was reduced to 40 in 2020 , costing €2.5 million each. There are currently around 90.

It is the only gambling jurisdiction in Europe that allows regulatory authorities to monitor local licensees in real time for tax collection and rule compliance. This is considered the most strictly regulated market on the continent.

“Italy was definitely the pioneering jurisdiction in Europe in terms of enacting a set of comprehensive and specific rules for the provision of online gaming services, thus becoming a regulatory reference model for other jurisdictions,” commented Italian lawyer Quirino Mancini , with more than 20 years of experience in the field.

At the end of 2018, the Italian government approved a ban on sponsorship by “bet” companies of Serie A clubs in the national market. Any direct or indirect form of advertising about betting was prohibited. The measure came into force in July 2019.

The local football federation (FIGC) requested that this set of bans be lifted during the Covid-19 pandemic, but were unable to do so. Clubs can still enter into partnerships with sportsbooks, but cannot do any advertising in Italy. Juventus, for example, is a partner of 10Bet.

Germany: ID check

The online betting market was regulated in Germany in July 2021, and the legal authority (GGL) for this market took over in January of this year.

Sponsorships of football bookmakers can only be done if the company receives a license and in compliance with the special requirements for the prevention of manipulation and protection of those most affected. Brands can be displayed in stadiums.

No club has a sports home as a sponsor in the center of the shirt this season, but Mainz has the FB88.com home on its sleeve. The Bundesliga itself is a partner of the betting site Tipico, but this is only exposed on the German language league page.

England: government anticipation

The British Parliament set the rules for the betting market in England in the “Gambling Act” 2005, with oversight from the UK Gambling Commission. This body is responsible for issuing alerts, suspending licenses and imposing sanctions on companies in the sector.

There was an amendment to the law in 2014, and in 2020 discussions began on revising the rules, involving the Premier League, the British government and other sports, but so far there have been no major changes.

On April 13, the English league approved the withdrawal of sponsorships from bookmakers from the front of the teams’ shirts. Clubs will have until the end of the 2025/26 season to do this.

Today, eight of them receive investment in this model: Bournemouth, Brentford, Everton, Fulham, Leeds, Newcastle, Southampton and West Ham. They raise a total of £60 million a year (R$ 378.3 million).

Only Premier League members will continue to be able to display these brands on the sleeves of their shirts and on plaques in stadiums. The league is not sponsored by any bookmaker.

— The Premier League’s strategy comes in the wake of an upcoming vote to regulate this type of sponsorship. They are trying to run ahead so as not to take everything, because then they will lose even more revenue. Bookmakers end up paying amounts well above the market. Those who are trying to reduce this impact of sports betting houses are the governments – commented Felipe Marchetti, PhD in Sports Integrity by UFRGS, who provides consultancy in sports integrity.

France: sponsorship in uniforms and plaques

France has had an independent authority to oversee the market since 2010, but the regulation underwent reform in October 2019, following the privatization of the national lottery operator. Sponsorship of houses to clubs in the country is allowed.

The National Gambling Authority in France (ANJ) is currently drawing up guidelines for sponsoring federations, leagues and clubs. The ANJ wants to discourage cases of “naming rights” of sports facilities, competitions or teams. Today there are 15 licensed companies in the country.

— Clubs in France can be sponsored by sportsbooks on shirts, sleeves and shorts, in addition to plaques in stadiums. Most clubs have this type of partner. The LFP (France’s professional football league) is sponsored by Betclic,” explained Douglas Lowenstein, Head of Business at Ligue 1.

Paris Saint-Germain, for example, signed a sponsorship with CBET, an online bookmaker in Latin America, in December last year.

Brazil: regulatory process

Law 13,756 passed in 2018 allowed fixed odds online betting in Brazil, when the bettor knows how much he will win if he wins. But there was no regulation of the activity. Companies do not have a CNPJ registered in the country, and taxation is levied only on financial transactions.

On the last 11th, the text of the Provisional Measure to regulate this market was presented to President Lula. The wording was done by the Ministry of Finance. The text predicts that bookmakers will have a smaller share of the collection and more obligations with the government.

Sports betting companies will have to be accredited by the federal government to operate in Brazil. The MP prohibits sports entities, clubs and players from advertising the names and brands of unregulated companies. That is, those who do not have a license will not be able to sponsor football.

— If Brazil implements bad regulations, it will get bad channeling. Channeling means absorbing those who are outside of it into the licensed market. Gamblers can continue on the illegal market. This is our concern,” commented Udo Seckelmann, head of the betting and crypto assets department at Bichara e Motta Advogados, which is part of the Brazilian Association for the Defense of Sports Integrity.

Leaders of Brazilian clubs claim that the sector today injects around BRL 3 billion in sports sponsorships – an amount that includes clubs, competitions and broadcasts. On the other hand, the federal government plans to collect at least R$ 6 billion from taxes on the activity.

Contacted by ge, the Ministry of Finance reported that the taxation provided for in the Provisional Measure of 16% on revenue obtained from games (Gross Gaming Revenue) is inspired by the UK market, considered by the government to be a “successful case in the subject”.