The government is set to row back on its plans to clamp down on gambling advertising, meaning Premier League clubs will be able to continue brandishing logos of firms on the front of their kits.
Instead ministers are planning to curb allowances around online gambling with the Gambling Commission, an organisation widely criticised for its slow response to the Football Index scandal, to be given additional power and funding.
The existing gambling legislation was introduced 17 years ago, making it outdated in an era where the market is reliant upon online trading.
Details of the new regulations will be published in a review document but proposals to implement a sponsorship ban are to be temporarily shelved following backlash from stakeholders.
Last season nine of the 20 top flight clubs, but none of the traditional ‘big six’, had gambling companies as shirt sponsors, representing an estimated value of £63m. Those included Leeds, West Ham and Newcastle.
The Premier League have previously argued that there is no evidence to show a causal link between sponsorship and problem gambling.
The development comes after 20,000 Everton supporters signed a petition calling on their club to shelve a lucrative deal with Stake.com to appear on the front of their kits next season. Some fans accused Everton of “selling its soul.”

Government officials will still encourage clubs not to advertise gambling firms on their kits, according to The Times, but it will not be entered into legislation despite the attempts of campaigners.
A recent YouGov survey said that 1.4m people in Britain are being harmed by gambling with a further 1.5m at risk and a Public Health England (PHE) study last year estimated that more than 400 suicides were linked to gambling in England every year.
Among new rules set to be introduced will be maximum stakes of £5 on online games, such as roulette or virtual sporting contests, while free bet offers may be restricted. The government estimates that it will see a reduction of about £700m in gambling revenue a year.