Stake, the prominent online gambling platform and current shirt sponsor of Everton Football Club, has announced its impending departure from the UK market.
This significant development comes as the company faces an investigation by the Gambling Commission over a controversial social media post.
The exit marks a pivotal moment in the UK’s online gambling landscape and raises questions about the future of cryptocurrency-based betting platforms in the country.
The Decision to Withdraw
Stake’s parent company, TGP Europe, has informed the Gambling Commission of its intention to relinquish its licence to operate in Great Britain.
This decision will see the closure of Stake’s UK-facing website by 11 March 2025, with immediate steps being taken to halt new registrations and remove redirections from the main Stake website.
The move comes after a meeting between TGP Europe and the Gambling Commission, suggesting that regulatory pressures may have played a role in the company’s decision to exit the market.
The Commission has previously taken enforcement action against TGP, indicating a history of regulatory challenges for the operator.
Impact on Everton FC and Other Clubs
The Gambling Commission has stated that it will be contacting Everton FC, along with two other football clubs sponsored by unlicensed gambling websites, to warn them of the risks associated with such partnerships.
This development could have significant implications for football sponsorship deals in the UK, particularly those involving online gambling companies. Although most top tier clubs are moving away from front of shirt gambling sponsorship anyway.
The Commission’s warning to club officers about potential legal consequences, including fines and imprisonment, for promoting unlicensed gambling businesses highlights the seriousness of the situation. Everton FC and other affected clubs will need to carefully consider their sponsorship arrangements in light of these regulatory concerns.
Stake’s Unique Position in the Market
Stake has positioned itself as “the world’s leading cryptocurrency casino and sportsbook,” offering customers the ability to bet using digital currencies such as Bitcoin and Ethereum. However, the company’s UK operations did not include cryptocurrency gambling due to licensing restrictions.
The platform operated in the UK through a white label agreement with TGP Europe, a common practice for international gambling firms seeking to enter the British market without substantial infrastructure investments. This arrangement has now come under scrutiny as part of the broader regulatory examination of Stake’s operations.
The Social Media Controversy
The Gambling Commission’s investigation into Stake centres around a social media video featuring adult actress Bonnie Blue. The clip, which contained inappropriate content, displayed the Stake logo and was posted by an account claiming affiliation with the gambling company.
While the video has since been deleted, and it remains unclear whether Bonnie Blue was directly involved in its creation or distribution, the incident has raised serious questions about Stake’s marketing practices and compliance with UK gambling regulations.
There are many videos showing Stake’s logo, most involve fighting or other click bait type behaviour.
Regulatory Landscape and Future Implications
Stake’s exit from the UK market underscores the increasingly stringent regulatory environment for online gambling operators in the country. The Gambling Commission’s actions reflect a growing focus on responsible gambling practices and the protection of vulnerable individuals.
This development may prompt other cryptocurrency-based gambling platforms to reassess their positions in the UK market. It also highlights the challenges faced by regulators in keeping pace with evolving technologies and business models in the online gambling sector.
Conclusion
As Stake prepares to close its UK operations, the online gambling industry in Britain faces a moment of reckoning. The company’s departure raises important questions about the future of cryptocurrency gambling, sports sponsorship, and regulatory oversight in the digital age.
For Everton FC and other clubs with similar sponsorship arrangements, this situation serves as a stark reminder of the need for due diligence and careful consideration of partnerships in the gambling sector. As the regulatory landscape continues to evolve, both gambling operators and their partners will need to navigate an increasingly complex environment to ensure compliance and maintain public trust.
The coming months will likely see further developments in this story, as the industry adapts to Stake’s exit and regulators potentially reassess their approach to cryptocurrency-based gambling platforms. Whatever the outcome, this event marks a significant turning point in the UK’s online gambling market and may set precedents for future regulatory actions in the sector.
