Chelsea and Liverpool have ended their partnership with Russian-owned company 1xBET just a week after Tottenham also decided to sever ties with the betting firm.
The gambling partner had their license suspended last month after reports of their website entertaining bets on children's sport and cockfighting, and last week Tottenham decided to distance themselves from the company after it was revealed the firm had been using Harry Kane's image to encourage people to gamble in Kenya.
The Daily Mail report that the Premier League giants only agreed a partnership with the Cyprus-based firm in the summer, but are now forced to abandon the deal or risk prosecution.
The UK's Gambling Commission had contacted both clubs to advise potential legal action under the Gambling Act for unlawful advertising if they continued to be associated with the 1xBET.
The move comes as the government continue to crack down on gambling companies, having earlier this year reduced the maximum bet that can be placed on fixed odds betting terminals.
The news also comes amid Huddersfield Town being fined by the FA for their shirt sponsorship spoof with Paddy Power in pre-season and thus raising further questions about the relationships between football clubs and betting firms.
1xBet are believed to be currently investigating how their brand came to be promoted on prohibited sites and have temporarily stopped advertising in the UK.