Caesars Sportsbook And Washington Capitals Jersey Sponsorship
In an industry first in the United States, Caesars Entertainment and the Washington Capitals have signed Starting next season, the Capitals’ home and third jerseys will feature a Caesars Sportsbook logo.
The Capitals plan to add a small Caesars Sportsbook patch on the right chest area of the team jersey. This past summer, the National Hockey League decided to allow teams to sell ad space on jerseys, and the Capitals are the first to take advantage of the opportunity.
NHL Sports Betting Sponsorship Restrictions
The NHL restricted teams to one ad on each jersey and one ad placed on helmets. The helmet advertising option was approved during the 2019-2020 season but logos will not show until the 2022-23 season. Teams can only sell advertisements in markets where sports betting is legal. Additionally, teams may not place sports betting sponsorship logos on away uniforms.
The NHL has embraced sports betting, but it wants to ensure that teams conduct related marketing efforts safely and responsibly. In speaking with ESPN, NHL Chief Business Officer and Senior Executive Vice President Keith Wachtel said this about marketing in a diverse legal landscape:
“We don’t want that jersey going to away markets where it’s not legal.”
The legalization of sports betting is a mixed bag in the United States. Some areas offer both online and land-based options, while some are strictly online only. For other states, legislation is in the works or entirely off the table. By restricting the away jerseys, the league ensures that they are not advertising sports betting services where they are not allowed.
The jersey advertisement deal between the Capitals and Caesars is an extension of an already existing partnership. In May, Caesars D.C. Sportsbook opened at the Capital One Arena, the home of the Capitals, and the venue was the first stadium sportsbook to open on a professional sports team’s property.
UK Market Set to Ban Advertising on Team Jerseys
As the United States prepares to launch team jersey advertising, the United Kingdom seeks a permanent ban. For many years, the UK allowed gambling companies and professional sports teams to sign sponsorship deals. Teams prominently displayed logos on their jerseys, and both the team and gambling companies made millions as part of the partnership agreements.
However, regulators and the UK government have taken a stricter approach to gambling regulations over the years. The 2005 Gambling Act is due to concerns of gambling addiction, along with financial and mental health protection.
Analysts expect that the review will end with a ban on Premier League jerseys and betting brand logos. If approved, the change would not take effect until 2023 or later. During this current Premier League season, nine teams have a gambling logo on jerseys. The loss of such sponsorships involving these teams would cost almost $80 million.
Similar moves have taken place in Italy and Spain to block advertising. For the most part, the concern stems from potential gambling harm. Regulators in the UK want to find new ways to decrease the presence of gambling in the sports world, and removing advertising is one way to do so. It is also expected that the UK will see changes regarding broadcast and in-stadium advertising.
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