Stake pulls out
Stake will no longer operate in the UK and will have its license removed as of next month.
The UK Gambling Commission announced that Stake’s parent company, TGP Europe, which operates the site as part of a white label arrangement, will withdraw it from the UK market.
Stake sponsored a controversial video featuring adult film actress Bonnie Blue
The move follows an investigation from the regulator after Stake sponsored a controversial video featuring adult film actress Bonnie Blue outside Nottingham Trent University, breaching UK guidelines on gambling advertising.
Regulatory controversy
Stake has gained notoriety for its advertising strategy in the UK and elsewhere, often featuring subtle branding on viral videos. The site launched in the UK in 2021, changing its standard business model to reject cryptocurrency deposits in order to bring it in line with UK regulators.
faced the ire of the regulator in 2023, receiving a £316,250 ($390,000) fine
However, the operator went faced the ire of the regulator in 2023, receiving a £316,250 ($390,000) fine for breaching anti-money laundering and social responsibility rules.
Speaking on the withdrawal from the UK market, TGP stated: “Stake has made a strategic decision in mutual agreement with TGP Europe to exit white-label agreements and focus on securing local licences through our in-house platform and operations, building upon our growth in key regulated markets such as our recent expansions into Italy and Brazil.”
Following UK regulations, Stake must now close down the website and issue guidance to all customers regarding account closures and allow them to reclaim any funds remaining in their accounts.
Soccer clubs warned
In addition to appearing in viral videos, Stake is also the official front-of-shirt sponsor of English Premier League club Everton.
two other Premier League clubs are also backed by unlicensed gambling sites
The Gambling Commission further clarified that it would write to Everton as well as other English soccer clubs to warn them about accepting deals with unregulated sites. Two other Premier League clubs are also backed by unlicensed gambling sites – Leicester City by BC.Game and Nottingham Forest by Kaiyun.
Clubs will be asked to perform due diligence on potential sponsors, including confirming that geo-blocking measures are active if the site does not hold a license to offer betting services in the UK.
“The letter will warn that club officers may be liable to prosecution and, if convicted, could face a fine, imprisonment, or both if they promote unlicensed gambling businesses that transact with consumers in Great Britain,” read a statement by the Gambling Commission.