White label operators, such as TGP Europe, are companies that provide a fully managed gambling platform, including software, licensing, payment processing, and customer support, which is then branded by a third-party company.
They offer a turnkey solution allowing businesses to operate online gambling sites under their own brand without developing infrastructure or obtaining a gambling license.
TGP Europe, based in the Isle of Man, operated multiple UK-facing websites, including brands like BJ88, SBOTOP, and Fun88, which sponsored UK football clubs.
Key Features of White Label Operators:
- Licensing: They hold gambling licenses (e.g., from the UK Gambling Commission) on behalf of the third-party brand, ensuring regulatory compliance.
- Operational Support: They manage technical aspects, such as website functionality, odds management, and customer service.
- Branding Flexibility: The third-party provides the brand name and marketing, while the operator handles the backend.
What is their purpose?
White label operators enable businesses to enter the online gambling market quickly and cost-effectively. They:
- Reduce Barriers to Entry: Allow brands to operate without developing platforms or securing licenses.
- Facilitate Market Access: Enable non-UK licensed operators to advertise and operate in the UK legally via a licensed white label provider.
- Support Sponsorships: Provide a legal framework for gambling brands to sponsor UK football clubs by operating compliant websites.
Why are they needed?
White label operators are needed because:
- Regulatory Compliance: Only UKGC-licensed operators can offer gambling services in the UK. International brands often lack this license, and white label operators provide it.
- Cost and Expertise: Developing a platform and obtaining a license is costly and complex. White label providers offer a ready-made solution.
- Sponsorship Legality: They allow non-UK licensed brands to sponsor clubs legally by operating UK-compliant websites, protecting clubs from regulatory issues.
Can’t Gambling Brands Deal Directly with Football Teams?
Gambling brands can deal directly with teams, but:
- Licensing Requirements: UKGC rules require advertisers to hold a UK license or operate under one. Many international brands don’t, making white label operators necessary.
- Regulatory Scrutiny: Sponsorships by unlicensed operators risk promoting illegal gambling, leading to penalties for clubs and brands.
- Operational Challenges: Direct deals require brands to manage their own platforms, which many lack the resources to do.
Without white label operators, many international brands couldn’t sponsor UK clubs legally.
Why Did the UK Gambling Commission Impose a Penalty on TGP Europe? What Exactly Did They Do?
The UKGC imposed a £3.3 million penalty on TGP Europe in May 2025, leading to the company surrendering its UK license. The reasons include:
- Failure in Due Diligence: TGP Europe didn’t adequately vet third-party partners or their funding sources, raising concerns about legitimacy.
- Anti-Money Laundering (AML) Breaches: They failed to implement effective AML measures, including assessing money laundering risks and third-party activities.
- Non-Compliance: They didn’t meet UKGC standards, particularly in ensuring white label partners complied with UK laws.
- Previous Violations: In 2023, TGP was fined £316,250 for similar AML and social responsibility failures. The 2025 penalty followed repeated non-compliance.
TGP chose to surrender its license rather than pay the fine and improve operations, leaving 29 websites unlicensed.
Are There Any Other Documented Cases Like These?
Yes, similar cases include:
- Stake (Everton FC Sponsor): In February 2025, the UKGC ordered Stake, a TGP Europe partner and Everton’s sponsor, to exit the UK after inappropriate advertising.
- BC Game (Leicester City Sponsor): In December 2024, BC Game, a TGP partner, was declared bankrupt and found to be operating illegally, prompting UKGC scrutiny.
- FSB (2020): The UKGC penalized FSB for AML and social responsibility failures, highlighting early concerns with white label models.
- Kaiyun Sports (Nottingham Forest and Crystal Palace): Kaiyun, using TGP’s services, faced issues when its UK operations ceased in 2024, raising concerns about unlicensed sponsorships.
These cases reflect a UKGC crackdown on white label operators and sponsorships.
What is the Future of Sponsorships with This Development?
The TGP Europe case signals changes for gambling sponsorships in UK football:
- Increased Scrutiny: Clubs like AFC Bournemouth, Fulham, Newcastle, Wolves, and Burnley risk prosecution for promoting unlicensed sites, requiring robust due diligence.
- Shift from White Label Models: The UKGC and government may impose stricter rules or ban white label arrangements, forcing brands to obtain direct licenses.
- Premier League Ban: From 2026/27, front-of-shirt gambling sponsorships will be banned, pushing clubs toward non-gambling sponsors or regional deals.
- Regional Partnerships: Operators may focus on non-UK markets, but compliance with broadcast regulations will be critical.
- Public Pressure: Advocacy groups are pushing to end gambling sponsorships, potentially accelerating regulatory changes.
- Impact on Clubs: Affected clubs may need to terminate or renegotiate deals, facing financial losses or shifting to licensed operators.
Long-Term Outlook: Reduced gambling sponsorships, stricter compliance, and a shift to non-gambling sponsors are likely. Clubs may diversify revenue streams, while operators focus on global markets.