Stake Casino Lose their UK Gambling License: Everton Sponsors in Peril
In a dramatic turn of events, Stake casino, the online sports betting site and iGaming company, has had its UK gambling license revoked. This bombshell announcement came from the United Kingdom’s Gaming Commission (UKGC) on Wednesday, following an investigation into a widely circulated social media video featuring the Stake logo and an adult actress outside Nottingham Trent University.
Stake’s parent company, TGP, has agreed to immediately halt new registrations on Stake’s UK platform and remove all redirection links to the main Stake website. A complete shutdown of the UK site is expected by March 11th. This isn’t TGP’s first brush with UK regulators; they were already fined £316,250 in April 2023 for failures in anti-money laundering (AML) and social responsibility.
The Gambling Commission’s statement emphasized the need for an “orderly closure” of Stake’s UK operations, ensuring clear information for customers on how to access their funds.
- What Does this Mean for Stake Casino?
While this is a significant blow, Curaçao-based Stake operates legally in over 35 countries worldwide. They also run a social casino, or sweepstakes gaming platform, accessible in 43 US states.
Interestingly, this news comes hot on the heels of Stake receiving full authorization to operate in the newly regulated Brazilian market just yesterday (February 11th). This Brazilian expansion is part of their broader push into Latin America, which also includes activities in Colombia and Peru. Stake is also making inroads into Europe, with a planned entry into Italy in 2024 through its acquisition of Baldo Line and the Idealbet.it brand, and expansion into Denmark via the Mocinoplay acquisition.
- The Everton Impact: A Sponsorship Headache
The situation gets even more complicated given Stake’s sponsorship deals with three English professional soccer teams, most notably Premier League club Everton. Everton’s shirts proudly display the gaming operator’s name.
The Gambling Commission has stated it will inform these clubs in writing about the risks associated with promoting an unlicensed gambling site. The clubs will be “expected to carry out sufficient due diligence to assure the Commission that consumers cannot transact with the sites from Great Britain by any means,” and regulators will be independently verifying these measures.
Clubs failing to comply could face prosecution, with potential penalties including fines, imprisonment, or both, if they promote an unlicensed gambling company that deals with UK consumers.
Everton’s sponsorship deal with Stake, reportedly worth over £10 million per season since 2022, is now in serious doubt. One can only imagine the scramble within the club to find a new sponsor for the remainder of the season.
