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Home / Business / Companies / Telecommunications

UK sports streaming/gambling stoush will be watched closely by Sky and Spark

Chris Keall
By Chris Keall
Technology Editor/Senior Business Writer·NZ Herald·
9 Jan, 2020 02:00 AM4 mins to read

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Chris Wood's Burnely are one of 10 Premier League sides that feature an online gambling outfit as their shirt sponsor. Photo / Getty

Chris Wood's Burnely are one of 10 Premier League sides that feature an online gambling outfit as their shirt sponsor. Photo / Getty

A sponsorship barney in the UK will be watched closely by Spark and Sky here - both of whom have made noises about possible sports-betting partnerships to bolster revenue from their sports streaming services.

Downing Street is urging Football Association executives to sever ties with online betting outfit Bet365 after campaigners queued up to condemn an arrangement that sees free access to streaming - but only if they bet on games.

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If you follow English Premier League football, then you'll know that online gambling has become a huge element - to the degree that this season nearly every club outside the Big Six now has a betting outfit as its shirt sponsor.

And with the sharp end of the FA Cup approaching, there's been fresh controversy.

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UK viewers complained this week after online betting agency Bet365 heavily advertised its rights to stream 23 FA Cup third-round matches last weekend (the first that saw seeded top-tier clubs join the competition).

Those who downloaded the app discovered matches were only available to watch if the customer had placed a bet or put £5 in an account in the 24 hours before kick-off.

It has since emerged the firm is among seven UK betting websites live-streaming FA Cup matches, along with Betfair, William Hill, Coral, Ladbrokes, Unibet and Paddy Power, as a result of an estimated £3 million-a-year deal between the FA and production partner IMG.

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Long-time Manchester City star Joey Barton (pictured making a racing bet) was playing for Burnley in 2017 when he received an 18-month ban for placing 1260 bets on football matches. Photo / Getty
Long-time Manchester City star Joey Barton (pictured making a racing bet) was playing for Burnley in 2017 when he received an 18-month ban for placing 1260 bets on football matches. Photo / Getty

Two years ago, the Football Association pulled out of a Ladbrokes sponsorship deal worth £4m a year. That move followed criticism from Burnley player Joey Barton, who was banned by the FA from all football for 18 months after he admitted to placing wagers on some 1260 games.

Barton said it was hypocritical of the FA to impose such a ban while entering new, lucrative streaming partnerships with gambling companies.

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Sports Minister Nigel Adams said this week: "The gambling landscape has changed since this deal was signed in early 2017. All sports bodies need to be mindful of the impact that problem gambling can have on the most vulnerable."

But Football Association is reportedly set to ignore Downing Street's direction to axe the streaming arrangement.

Why sport - the only appointment-viewing left - holds so much appeal for broadcasters in the age of streaming https://t.co/SRm7sVygX1

— Chris Keall (@ChrisKeall) January 2, 2020

UK pundits are now watching closely to see what will happen next.

And I'm guessing local streaming contenders Spark Sport and Sky will be, too.

Insiders at both Spark and Sky have told me that online gambling is a potential source of revenue for their sports streaming operations.

Spark Sport head Jeff Latch told a pre-World Cup media briefing that it was an area he was monitoring.

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And Justin Tomlinson - who was parachuted into Sky last year as a special adviser for digital products - said at an August briefing on Sky's expanded sports channels and new Sky Sport Now streaming app that he was assessing potential sports-betting partnerships.

And Spark has been here before, to a degree. When the telco briefly owned half of NZ sports streaming pioneer PremierLeaguePass, the TAB came on as a sponsor.

Could it be a case of back to the future? One to watch in 2020.

Meanwhile - while investors have yet to show any appreciation - Sky's efforts to re-focus on streaming are starting to turn around its subscriber numbers.

The company partially reversed recent losses to register a 1 per cent gain in total subscribers to 779,000 in 2019 as a 50 per cent jump in those paying for its streaming services outweighed a decline in its traditional satellite business. Sky finished its financial year with 161,000 active streaming subscribers.

Spark said it had 186,000 Spark Sport subscribers as the 2019 Rugby World Cup wrapped up, but would not say how many were Spark broadband or mobile customers who had qualified for a freebie.

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