The initial deal was announced on 7 June, with BK8 set to become the team’s shirt sponsor for the 2021/22 season, after the club ended its previous agreement with Dafabet.
However after negative reactions from fans and other partners, Norwich and BK8 came to a mutual termination agreement.
The club say they anticipated unfavourable reactions to partnering with a betting company, but have subsequently apologised for an ‘error in judgement’.
Norwich’s chief operating officer Ben Kensell said: “As a self-financed club there is always a fine balance between generating the revenue levels required to help maintain that model, whilst working within our visions and values.
“On this occasion, we made an error of judgement. Our standards were not at the levels we demand of our football club. We can now only apologise to our supporters and former players, Grant Holt and Darren Eadie, who were across the BK8 promotional launch campaign, for any offence caused.
“We want to continue to embed a highly inclusive culture across the club, together with an accessible and welcoming environment free of demeaning and discriminatory behaviours.”
The club added that an update on a replacement sponsor would come in due course.
Betting sponsorship in football has received significant opposition in the UK, with the Big Step campaign – supported by League Two team Forest Green Rovers – looking to ban all gambling promotion in football.