By ASVG Media
Betfred founder Fred Done has warned that higher British gambling taxes will force his company to reduce its sports sponsorship spending, creating a potentially important test of the relationship between betting regulation and sports financing. Done says Betfred intends to stop sponsoring rugby league's Super League and has warned that further tax pressure could put its horse-racing portfolio at risk. The company currently backs five major races, including the Epsom Derby. The warning follows Betfred's decision to close 132 betting shops, putting more than 600 jobs at risk.
There is a direct African lesson here. Betting companies have become substantial sponsors of football clubs, leagues and broadcast properties across the continent, meaning regulatory or taxation changes can quickly create funding gaps for rights holders that become too dependent on the category. African sports organizations should therefore use betting sponsorship strategically while continuing to diversify across telecommunications, banking, technology, consumer goods, airlines, automotive, healthcare and entertainment. Sponsorship concentration is a commercial risk even when the category supplying the money is booming.
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