Spanish clubs sponsored by betting companies advised to cancel their contracts

Spanish clubs have been told by their country's government that they must end their sponsorship deals with gambling companies.

The letter, signed by minister of consumer affairs Alberto Garzon and seen by Reuters, informs the clubs that contracts with gambling companies will be prohibited once the new royal decree is approved by a cabinet meeting and written into law.

The decree, which affects all sports in Spain, contains a transition period which ends when the current season terminates next May

The letter added that betting companies sponsoring teams and athletes had "contributed to normalising a practice with serious health and social risks which need to be minimised in the field of advertising".

It said athletes' status as role models had led to an increase in gambling among young people aged 18-25, rising from 29% to 40% in the last four years. The amount of money spent by young people on gambling, meanwhile, had risen by 13% annually.

Seven of the 20 teams in Spanish soccer's top division La Liga are sponsored by gambling companies, including Europa League holders Sevilla and six-times league champions Valencia.

Top-flight clubs are already facing serious financial difficulties due to the impact of the COVID-19 pandemic, which Valencia president Anil Murthy said had cost the club around 100 million euros in lost revenue.

La Liga president Javier Tebas has spoken out against the decree, saying on Monday that clubs would lose a combined 90 million euros and that the league was trying to increase the transition period to up to three years to help teams acclimatise.

Betsson Announces UK Brand Closures

Betsson is reducing its business presence in the UK further by reducing its licenses to only one after handing back three to the UK Gambling Commission.

The operator has been pulling back from the UK market since 2018 when it closed its offices and now with the remaining license will operate under the Rizk brand exclusively.

With just 3% of Betsson’s business coming from the UK market and with the company saying that with the cost of investments in technology, regulatory compliance and marketing it was prudent that review and downsize its operations in the UK.

B2C Brands such as Guts, Kaboo, Betsafe, Betsson, Casino Euro, Live Roulette, Racebets and Jackpot247 will all be removed from the UK markets.

Sports Personalities To Be Banned Under New Rules For Gambling Ads

The use of sports personalities and other celebrities in gambling related advertising could be banned under new rules that are being considered by the Committees of Advertising Practice (CAP), the regulator for setting the code of practices for advertising in the UK.

At present gambling adverts are only be banned if the CAP thought that it was appealing to under 18-year olds, however the CAP is now considering banning adverts that it feels uses adults in the celebrity bracket to attract children to gambling.

Current adverts that feature Tottenham football boss Jose Mourinho, Harry Redknapp and former England striker Michael Owen would all be banned under the new rules.

However a well known actor such as Ray Winstone who is not known to children would be allowed to continue advertising for Bet365.

The possible new rule changes on advertising follows the recent GambleAware research that found that the current content of gambling advertising has the potential to attract under 18s to gambling because of the use of such known celebrities.

Currently the proposals are under public consultation and if they were to be enforced would happen early in 2021.

GVC eyes Portuguese top spot with Bet.pt takeover

GVC Holdings has confirmed that it will return to Portugal by acquiring online sportsbook Bet.pt for an undisclosed sum. 

The FTSE100 betting group announced its latest acquisition as part of its Q3 2020 trading update, which saw GVC increase full-year EBITDA guidance to the £770-790 million range following a rapid recovery across all core regulated marketplaces.

In its trading statement, GVC outlined that its Bet.pt acquisition remained ‘consistent with its regulated market strategy’, as the operator seeks to establish a leading presence within a ‘market which is anticipated to more than double to around €450m by 2023’.

GVC had previously held a Portuguese market presence through its Bwin sportsbook brand but decided to withdraw from the market in 2015 following the approval of Portugal’s amended Gambling Bill, which instantly raised sportsbook turnover taxes from 8 to 16%.

Citing that Portugal’s new gambling tax regime had made its marketplace no longer viable, GVC departed the market alongside a raft of international operators including William Hill, bet365 and Ladbrokes.

A domestic incumbent, in 2016 Bet.pt was the second online sportsbook to be granted a new Portuguese sportsbook licence by regulatory agency Comissao de Jogos do Turismo (SRJI).

Four years on from its legislative overhaul, the Portuguese sportsbook marketplace has seen a number of international operators relaunch their services, including Betclic, Betano, Betway and 888Sports.

“We are pleased to welcome Bet.pt to the GVC Group having been impressed by the quality of the business and its significant growth since launch,” read the GVC statement. “This acquisition is in line with our strategy to grow in new, regulated markets and builds on our strong track record of buying local brands and building them into market leaders.

“Through access to GVC’s content, technology and digital marketing skills, we believe Bet.pt can build on it’s position as a market leader in Portugal.”