Stake Exits UK Gambling Market Due To Social Media Marketing Scandal
In a move that shocked many, the announcement came that Stake is exiting the UK market in March due to a UK Gambling Commission investigation into a social media post that sparked controversy.
Stake, a major online casino and sports betting platform, is operated by TGP Europe Limited (TGP) on a white-label basis in the UK. On 12 February, the Gambling Commission and TGP announced the site would shut down.
Stake is just one of many online casinos that deliver online casino games to consumers in the country. With Stake shutting down, reputable licensed UK casinos, like Magic Red and All British Casino, will likely get a larger portion of the market while offering exceptional casino experiences. These casinos are licensed by the UKGC (UK Gambling Commission) and provide optimum user experience and security.
Scandalous Social Media Marketing Post
An in-depth investigation was launched into a video that was posted on social media, featuring adult entertainer Bonnie Blue spending time at Nottingham Trent University. The clip features the actress discussing her exploits at the university while the Stake logo is featured on the screen. The account that posted the video claims to be affiliated with Stake, however, it was not posted on any official accounts.
The video has since been deleted, and there is uncertainty about whether Bonnie Blue was directly involved in the post, whether the poster created the video, or whether it was a repost from a different account.
The Commission met with TGP about the situation, whereafter the operator announced that Stake would no longer accept registrations on their UK site, and all links from the main Stake website that redirect to this site would be removed. The platform will fully shut down by 11 March.
The latest scandal is not the first time that TGP got in trouble with the Gambling Commission in the UK. The company was fined £316,250 in April 2023 due to failing to meet anti-money laundering and social responsibility standards. The latest investigation has placed stronger regulatory pressure on the operator, which has prompted Stake’s exit from the UK market.
According to a statement by the Commission, they expect the operator to conduct an “orderly closure” of their British website and that there need to be clear instructions on how platform users can receive their remaining funds. The Commission encouraged users to reach out to Stake to confirm how to access the money deposited in their accounts.
Stake’s Statement
Stake’s statement to cease operation in the British gambling market read as follows:
“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.”
When accessing the website, users are met with a front page that says it no longer accepts players from the UK “due to our gambling license”.
Stake Football Sponsorship And Liability For Clubs
Stake was the main sponsor of Everton since the start of the 2022-23 English Premier League season. The Gambling Commission indicated that they would contact the club, as well as Nottingham Forest and Leicester, both clubs with unlicensed casino sponsors, to warn them of the potential risks of being associated with and promoting unregulated platforms.
The Commission is looking for confirmation that football clubs sponsored by gambling sites have done their due diligence and that bettors in the UK should not be exposed to unlicensed sites. Clubs will have to show that these sites make use of geo-restriction measures in the UK. Should this not be proven, club officers may be prosecuted for promoting unlicensed gambling websites in the UK.
Ongoing Global Expansion
Despite no longer operating in the UK, Stake is continuing to expand globally. The company received a licence to operate in Brazil on 11 February and is also currently operating in Peru and Colombia as part of its Latin American expansion.
Stake is also spreading across Europe, with a license for Italy granted in 2024 when it acquired Baldo Line and Idealbet.it. The gambling giant also has a foothold in Denmark after it acquired Monicoplay.
The operator is available in over 130 countries, including major online gambling hubs like China and Canada (with the exception of Ontario), however, it has not yet entered some of the biggest markets like Australia, Germany, the US, and Spain, and now it is losing out on the UK too. The latter is considered to be the largest online gambling market in the world, with a predicted growth of 5.4% between 2025 and 2029.
