Gambling Sponsorship Codes of Conduct: What Are They Likely to Mean for Gambling Sponsorship in the Football and Horseracing Industries?

Last month, both the English football industry and British horseracing industry published codes of conduct which address sponsorship arrangements between stakeholders in each of those sports and betting companies. These codes of conduct have been prepared following the 2020 Gambling Act 2005 Review, and the subsequent release of the White Paper ‘High Stakes: Gambling Reform for the Digital Age’ (the “White Paper”), which called on sports governing bodies to agree a set of guiding principles to help shape a gambling sponsorship code of conduct for sport.

In relation to football, the Premier League (“PL”), the EFL, the Women’s Super League (“WSL”) (collectively, the “Football Competitions”) and the Football Association (“FA”) have all come together to draft the Code of Conduct (the “Gambling Sponsorship Code for Football”).

The Gambling Sponsorship Code for Football is to apply from the start of the 2024/25 season. Consequently, insofar as it applies to the PL, the code would cover the last two seasons before the PL clubs’ voluntary withdrawal of gambling sponsorship from the front of their matchday shirts kicks in and continue thereafter to apply to PL permitted betting sponsorships (i.e. other than front of shirt sponsorships). Whilst the withdrawal of gambling sponsorship from the front of matchday shirts is currently applicable only to PL clubs, the Gambling Sponsorship Code for Football would apply more broadly, including to clubs who are members of the EFL and WSL as well as the PL (the “Clubs”) and their respective gambling sponsorship arrangements. 

For the domestic horseracing sector, the British Horseracing Authority (“BHA”), with support from the Racecourse Association (the “RCA”), has also launched a similar Code of Conduct to cover gambling sponsorship arrangements with British horseracing (the “Gambling Sponsorship Code for Horseracing” and, together with the Gambling Sponsorship Code for Football, the “Codes”). This code is intended to be implemented in conjunction with the existing sponsorship framework for racecourse owners and also the jockeys’ sponsorship code.

What do the new codes of conduct cover?

The Codes introduced by each of the Football Competitions and the BHA are drafted to implement similar overarching principles and give some further examples / instances (on a non-exhaustive basis) of what is expected to comply with these principles in certain circumstances and/or on certain matters. The overarching general principles are:

• protection of children and young people;
• maintenance of sporting integrity;
• reinvestment of sponsorship income back into the sport; and
• promotion of social responsibility within betting on the sport.

As is acknowledged in the White Paper, there are already various rules, regulations and codes of practice in place which address integrity, social responsibility and protection of vulnerable persons. Applicable requirements in these areas are already covered in the UK Gambling Act 2005 as well as in the UK Code of Non-Broadcast Advertising and Direct and Promotional Marketing (the “CAP Code”) and the UK Code of Broadcast Advertising (the “BCAP Code”) as well, in certain cases, in sporting rules and regulations. 

Furthermore, GB licensed gambling operators are also required to comply with the restrictions and requirements, which cover the principles of “protection of children and other vulnerable persons”, “integrity” and “social responsibility” set out in the Licence Conditions and Codes of Practice (“LCCP”) published by the Gambling Commission, and those gambling operators which are members of the Betting and Gaming Council are also required to comply with the Industry Code for Socially Responsible Advertising (the “Industry Code”), as published by the Industry Group for Responsible Gambling (“IGRG”). The codes are intended to affirm and supplement the existing legislative and regulatory requirements that are in place.

However, the express inclusion in the Codes of a specific principle for gambling sponsorship income to be reinvested back into the sport is particularly notable. The Gambling Sponsorship Code for Football requires sponsorship income raised to be “reinvested back into infrastructure and programmes that serve football fans and communities”. Such initiatives are then clarified to include:

• staging strong competitions;
• improving stadia, training facilities and other infrastructure;
• enhancing welfare and education services that are available to players; and
• promoting community and grassroots participation (including activities delivered by associated charitable organisations). 

Similarly, the Gambling Sponsorship Code for Horseracing refers to gambling sponsorship income being reinvested, among other things:

• so as to be applied as race prize money which would help secure a strong fixture list as well as its impact being filtered through to the industry’s participants (including owners, trainers, stable staff and jockeys);
• in infrastructure and training businesses and facilities; and
• to support human and equine welfare and educational services for participants.

Monitoring Compliance

The Gambling Sponsorship Code for Football provides for the implementation of a complaint procedure permitting individual complainants to raise complaints about a Football Competition or Club failing to adhere to the principles contained in the Code. If not satisfied with the response provided or no response is provided within 12 weeks, the complainants may refer the matter to the Independent Football Ombudsman.

With regard to the Gambling Sponsorship Code for Horseracing, the RCA is the signatory to the code on behalf of British racecourses. It will then provide advice, guidance and support to racecourses on observance of the four general principles as outlined above. It is intended that the BHA shall require industry participants to observe the four general principles as outlined above, via the Rules of Racing. The Gambling Sponsorship Code for Horseracing provides that complainants can email the BHA with issues regarding application of the code and in the event that further review is required following the BHA’s initial response, such review will be carried out by the BHA’s Regulatory Independent Non-Executive Director.

Takeaways

Whilst the renewed focus on ensuring that gambling sponsorship arrangements are executed in a socially responsible way has been welcomed by the Betting & Gaming Council, it will be interesting to consider the practical impact of the Codes, particularly taking into account the scope of rules, regulations and codes of practice already in place with respect to sport’s relationship with the gambling industry. One particular area of heightened focus may be the extent to which sponsorship rights packages are crafted to more expressly allow for a particular reservation or allocation of rights for safer or responsible gambling messaging.

In this context, the Football Competitions have agreed to draft and publish a collective annual statement at the end of each season detailing how they (and the Clubs) have implemented the code (and, more particularly, the principles contained within it) and also details of any instances where either any of the Football Competitions or any of the Clubs have been found not to have complied with the code. Similarly, with respect to the Gambling Sponsorship Code for Horseracing, the BHA shall publish a similar annual statement setting out how the industry has complied with the code. 

As alluded to above – of particular interest will be the level of scrutiny that the Football Competitions and the BHA display in assessing compliance with the Code’s principles as well as the details within each of the statements as to how the income from gambling sponsorship has been reinvested back into the respective sports, their infrastructure and community.