Online Gambling Brands Big Into Sports Sponsorships
Today, running a professional sports team is an extremely expensive proposition. Huge player salaries have to be paid each month, and huge amounts of money have to be raised to maintain large stadiums. So by far the better part of valor for a team owner is to have as many sponsors as possible, and as wealthy sponsors as possible, to support the team's cash flow. And online gambling companies in this post-PASPA world are about as good as it gets for sponsors.
Year after year, the global online gambling industry continues to grow by leaps and bounds. The industry's biggest companies, the world's biggest online gaming and betting brands, keep raking in the profits. But to stay afloat and keep those profits flowing, they need to keep their names and brands in front of the public - to get that old "mind share" they need to stay competitive.
There is no doubt that online sports gambling has generated a huge amount of money for almost every football club in the UK and Europe. You can hardly go to a football match without seeing a top online gambling brand either plastered on a team's kit or on the advertising boards that line the perimeter of the club's ground. And these clubs have not been shy about taking the money. You have to wonder if they even bother to read the ridiculously long contracts that must accompany the paychecks. If they did, they would surely be more alarmed by what those contracts say.
Online Gaming Sport Sponsorships are Common in England
Online gaming sports sponsorship is most common in England, France, Italy, Spain and Malaysia. This is logical as these nations have legalized and heavily regulated their online gaming industries. However, the resulting brand awareness of online gaming does not only benefit gambling fans in these countries.
The reality is that almost all major British and European football matches are now watched by millions of people around the world, and online bookmakers and betting advertisers want to attract and hook as many people in as many countries as possible. This is very understandable as the whole business of online betting seems to be spreading everywhere and just seems to be growing.
However, not everything is rosy in the world of online gambling sports sponsorships. These sponsorships are not a problem in countries where gambling is legal and regulated, but they can become a huge issue in countries where the popular Internet activity has a less than stellar reputation. Take Portugal, for example.
A Portuguese court has ordered Bwin.party Digital Entertainment, the world's largest publicly traded online gaming company, to cease all advertising and sponsorship of sporting events in Portugal. This could jeopardize the company's main sponsorship deal with the prestigious Liga Portuguesa de Futebol (Portuguese Premier Soccer League), although the company will be allowed to continue sponsoring the league until all appeals are exhausted.
Local Licensing Laws Could Impact UK Sports Sponsorships
Similarly, sports sponsorship by digital betting brands in the UK could well be affected if a new local online gaming licensing regime - currently under review - comes into effect. Currently, any online betting company with a license from a European jurisdiction can operate and market in the UK. However, if the new local licensing regime comes into effect, only UK licensed betting companies would be able to operate and market in the UK.
This could mean fewer sports sponsorships overall, and because the UK online gambling tax rate is currently so high, even companies with UK licenses have less money to spend on sports sponsorships, which could leave a big hole for teams and sports to fill.
Therefore, it will be interesting to watch the direction of UK sports sponsorship over the next few years. Below are the top 10 sports sponsorships by gaming companies worldwide (Source: Sports Sponsorship and Online Gaming Sector White Paper, Matthew Glendinning, Editor, Sports Marketing Frontiers):
Top 10 Gambling Sports Sponsorships
Sponsor | Team/Sport | Year | Value |
Sport's Toto | Turkish Süper Lig | 2010 to 2015 | $125 million |
Bwin | Real Madrid | 2010 to 2013 | $80.4 million |
Bwin | AC Milan | 2006 to 2010 | $64.3 million |
Mansion | Tottenham Hotspur | 2006 to 2010 | $53 million |
Betclic | Juventus | 2010 to 2012 | $21.4 million |
Genting | Aston Villa | 2011 to 2013 | $16 million |
Vriendenloterij | Eredivisie | 2011 to 2014 | $10 million |
Bwin | MotoGP | 2012 to 2013 | $5 to $10 million |
Mansion | Manchester City | 2011 to 2013 | $8.4 million |
12Bet | Sevilla | 2009 to 2011 | $8 million |