The Betting and Gaming Council (BGC) has underlined the important contribution betting companies make to the economy through spending on marketing and sponsorship.
The benefits provided by marketing activity from regulated operators are highlighted in a new BGC advertising and sponsorship report, prepared independently by Alvarez and Marsal.
There is political pressure to restrict gambling advertising in the UK but that would only impact licensed companies.
Premier League clubs have already agreed to a ban on front of shirt sponsorship from betting companies from the start of next season.
The BGC report stresses that “lower levels or grass roots of certain sports are largely dependent on gambling advertising and sponsorship”.
Sport Sponsorships Under Threat
Betting and Gaming operators spent £138 million on sponsorship from October 2023 to September 2024.
One of the most successful is Paddy Power’s association with the World Darts Championship.
The Flutter-owned bookmaker raised over £1.25 million for charity at the recent tournament.
Several bookmakers are reviewing their sponsorship commitments in the current economic climate.
Coral has withdrawn its sponsorship of the Cheltenham Festival in cost-cutting measures, ending its 74-year association with National Hunt racing’s most prestigious meeting.
Impact Of Gambling Tax Hikes
It is a time of financial uncertainty for the UK betting industry.
New tax levies are being imposed over the next two financial years.
William Hill owner Evoke says some of its high street shops will close as a result of the gambling tax hikes.
All of the new measures are a result of Chancellor Rachel Reeves’ autumn Budget.
Remote Gaming Duty will almost double from 21% to 40% in April for the likes of online casino games and bingo.
The tax payable on gross profits from remote sports betting will rise from 15% to 25% in April next year.
Gambling Advertising Spend Down
There has been a steady decline in gambling advertising by regulated operators since 2021.
It made up 3% of the total advertising spend in the UK in 2023 and dropped to 2.7% in 2024.
There has been a positive shift of focus though, with 20% of all betting advertising promoting player protection and safer gambling.
GB-licensed operators spent £1.15 billion on gambling advertising from October 2023 to September 2024.
Digital advertising accounted for a hefty £768 million out of that total.
Broadcast advertising was nearly 30% of that spend with £341 million.
Contribution To The UK Economy
The BGC report estimates that marketing and sponsorship activity from regulated operators supports 9,900 jobs.
It contributes around £506 million in gross value added across the marketing, creative and media networks supporting the advertising and sponsorship activity.
Activity within businesses commissioned by operators in the regulated industry accounts for £251 million.
A further £255 million is from the broader supply chain around those businesses.
Raising Standards
Grainne Hurst, CEO of the BGC, is keen to stress the positives from regulated marketing campaigns.
“This independent analysis shows that gambling advertising by licensed operators is continuing to fall.
“Spend is increasingly concentrated on safer gambling messaging and consumer protections.
“Our members operate within some of the strictest advertising rules of any industry.
“They continue to raise standards across the sector.”
Adam Rivers, Managing Director at Alvarez & Marsal, confirmed that the report was based on data gathered from licensed operators.
