Stake’s UK-facing brand will stop operations next month due to regulatory action by the Gambling Commission, the agency has said.
TGP Europe Limited, which operates Stake.uk.com under a white-label arrangement, opted to close the site following an inquiry by the Commission.
The investigation began after a widely shared social media video showed the Stake-branded logo beside a “adult film actress” outside Nottingham Trent University, according to the regulator.
TGP, which has previously faced enforcement action in the UK, indicated during a meeting with the Commission that it will immediately suspend new registrations on Stake.uk.com and delete redirection links from the main Stake website.
In 2023, the UKGC fined TGP Europe £316,250 for anti-money laundering (AML) and social responsibility violations.
Stake.uk.com will be completely shut down for UK users on March 11.
A spokesperson for Stake further stated: “Stake has made a strategic decision in mutual agreement with TGP Europe to exit white-label agreements and focus on securing local licenses through our in-house platform and operations, building upon our growth in key regulated markets such as our recent expansions into Italy and Brazil.”
UKGC cautions other football clubs
Stake is presently the front-of-shirt sponsor of Premier League team Everton.
The UKGC said it will write to Everton and two other football teams with unlicensed sponsors, warning them about the dangers of supporting illegal gambling services.
The regulator verified to NEXT.io that the clubs in question are Nottingham Forest FC, financed by Kaiyun, and Leicester City FC, supported by BC.Game.
The Commission will want guarantees from these clubs that they have done due diligence on their white-label partners and that British customers cannot access unauthorized websites.
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The regulator also emphasized the importance of adequate geo-blocking measures, pointing out that such limitations may sometimes be circumvented via Virtual Private Networks (VPNs).
“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,” according to the UKGC.
The regulator also stressed that companies leaving the UK market must guarantee a smooth departure.
This involves giving consumers clear instructions on how to withdraw their money. Customers with account-related questions should contact the operator directly through its website.
White-label sponsorship arrangements are under investigation
The regulatory attention on white-label agreements was heightened last year when Leicester City jersey sponsor BC.Game shut down its UK site amid a regulatory struggle over its Curaçao-licensed bitcoin casino.
The firm has also operated in the UK under a white-label partnership with TGP Europe, which allowed it to acquire a two-year sponsorship deal with Leicester City FC under UK advertising regulations.
Following the BC.Game issue, gaming minister Baroness Twycross warned that more action might be taken against white-label sponsorship agreements.
Baroness Twycross added, “I am working with the Gambling Commission and the industry to acquire further information of their prevalence and impact. If more action is required, we will take it.”
Historically, white-label agreements enabled offshore gambling operators to collaborate with licensed businesses like TGP Europe to develop branded gaming sites.
Under UK legislation, these businesses can then enter into sponsorship arrangements with British sports teams. However, increased regulatory scrutiny may jeopardize the long-term viability of such partnerships.
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