Unlicensed gambling firms in the UK could be banned from sponsoring sports teams, including Premier League clubs, under government action.
Ministers say they are concerned about the risks posed by the unlicensed market, such as companies not following laws and guidelines designed to protect customers.
These include mandatory financial vulnerability checks and responsible advertising.
The government has also warned that a lack of data security measures could leave people open to fraud and identity theft and has linked unlicensed betting to organized crime.
A consultation on the proposals will be launched this spring.
Last year, several clubs were warned by the Gambling Commission over their relationship with the unlicensed TGP Europe.
Premier League sides Bournemouth, Fulham, Newcastle and Wolves, as well as then-Championship Burnley, were all sponsored by betting websites run by the firm, which surrendered its British license after an investigation found it “failed to carry out adequate checks on business partners” and breached “anti-money laundering regulations”.
A letter sent to clubs warned that “they could be prosecuted if they promote unlicensed gambling businesses that transact with consumers in Great Britain.”
