Football League clubs have been making money from their supporters’ gambling losses, it has emerged.

Under an affiliate scheme that has triggered outrage, members of the EFL pocketed a percentage of losses from supporters when they placed unsuccessful wagers with competition sponsors Sky Bet.

The scheme — which MP Carolyn Harris branded as exploitation on Wednesday — was discontinued at the end of the 2019-20 season, having been set up in 2013 and renewed in 2017. 

EFL clubs have been making money from their own fans’ gambling losses with Sky Bet

However, the EFL have admitted some sides are continuing to benefit, and will do so until the end of the 2023-24 campaign.

Some of the bigger Championship clubs made around £10,000 annually from the deal which saw the clubs act as middle men, sending punters Sky Bet’s way and then picking up a percentage of the money they lost.

Fans were invited to click links to Sky Bet on club websites and register accounts. 

Those accounts were then tracked and the club in question then picked up a share of the subsequent losses.

Some Championship clubs have been making up to £10,000 annually through the scheme

It remains to be seen whether Premier League clubs who have or had sponsorship deals with bookmakers were subject to similar incentives.

A draft white paper which was meant to reform gambling laws has been shelved a number of times and there are concerns new Prime Minister Liz Truss could drop it.

The Conservative MP Iain Duncan Smith, who is attempting to keep the white paper alive, told the Guardian that the deal was ‘terrible’.

‘That a football club might benefit from this runs against all that they are supposed to stand for – support for their fans, for the people who go to the ground,’ he said.

There are concerns Prime Minister Liz Truss could drop plans to reform gambling laws

Labour MP Carolyn Harris said there appears to be proof clubs are exploiting their own fans

Labour MP Carolyn Harris, who co-chairs a cross-party parliamentary group examining gambling-related harm, added: ‘This appears to be proof that football clubs are exploiting their own fans, some of whom will be gambling addicts, by taking a cut of every penny they lose to greedy bookmakers.’

An EFL spokesperson said: ‘When the EFL and Sky Bet renewed its long-standing partnership for the 2019/20 season, we placed a greater focus on putting safer gambling at the heart of the agreement. As a result, the previous affiliate scheme was discontinued.

‘While some clubs do receive revenue from legacy sign-ups that occurred prior to the new agreement, the affiliate scheme in place was phased out and all sign-up links via EFL Digital channels have been removed.’