Experts have highlighted the importance of sponsorships to sports in Germany, emphasizing the significant loss of funding a ban would cause.
This concern was a key factor in rejecting the proposed ban on sports sponsorships.
Inka Müller-Schmäh, managing director of the Association of Sports Sponsorship Providers, stressed the need for a legal framework to ensure continued support for German sports through sponsorships.
“Sports sponsorship must remain possible, no matter where, when, and how sport takes place and is broadcast,” Müller-Schmäh stated.
Challenges in the German Gambling Industry
The German market faces significant challenges with the black market, as strict regulations push players towards offshore operators.
A 2023 study from the University of Leipzig revealed that only 50.7% of bettors use legal German online operators, with nearly half opting for illegal ones, raising concerns about bettor safety.
Regulations prohibit operators from advertising online or on television between 9 pm and 6 am.
There are also restrictions on showing sports clips in ads, and partnerships with sports personalities and influencers are banned.
Luka Andric, managing director of the German Sports Betting Association (DSWV), criticized these “extremely strict” restrictions.
“It’s probably one of the strictest around, unless you take a monopoly system or somewhere where you have a complete ban on advertising,” Andric told iGB.
Sponsorship Bans in Europe
In July 2023, the Netherlands banned operators from sports sponsorships, allowing a transitionary period for existing agreements to conclude.
Similarly, France introduced new sports sponsorship regulations in 2023, driven by the changing role of sponsorships in the country.
The French regulator Autorité Nationale des Jeux (ANJ) noted a 20% increase in sport partnerships with legal operators between 2022 and 2023, reaching €40.7m.
However, clubs also secured €15m worth of sponsorships with unlicensed sites targeting African and Asian players.
In April 2023, English Premier League clubs agreed to stop gambling company sponsorships on the front of shirts, effective from the 2025-26 season.
Despite this, the market remains attractive, with Aston Villa signing a deal with Betano in April to be their front-of-shirt sponsor until 2026.