Stake Ends UK Operations Following Gambling Ad Scandal
Following an investigation by the Gambling Commission (“the Commission”) into a high-profile advertisement that was widely viewed having been distributed on social media, TGP Europe Limited (“TGP”) will be ending the white-label arrangement with Stake.
The advertisement in question displayed the Stake-branded logo and featured an adult actress outside Nottingham Trent University and raised concerns as it was seemingly promoting gambling to university students by utilising sexual content.
A “white-label” arrangement is one where, in a gambling site context, an unlicenced site can operate under the guise of a licenced operator without incurring significant costs in relation to the relevant infrastructure and initial investment required to obtain its own licence.
TGP has attended a meeting with the Commission and confirmed that they will immediately stop accepting new registrations to the Stake.uk.com platform. The final shutdown of the white-label site will take place before 11th March 2025, 4 weeks after the posting of a consumer information notice by the Commission today, 12 February 2025.
Stake are currently the front shirt sponsor of Everton FC and the Commission have confirmed that they will be writing to Everton and two other football cubs sponsored by unlicensed sites warning of the risks of promoting unlawful gambling websites.
The Commission will also seek assurances from the clubs that they have carried out due diligence on their white-label partners and that consumers in Great Britain cannot transact with the unlicensed sites. The clubs will also be required to demonstrate that they have assurance that steps have been taken by the sponsors to geo-block the sites effectively.
It is understood the letter will warn that club officers may be liable to prosecution for failure to carry out adequate due diligence and, if convicted, club offices may face a fine, imprisonment or both if they promote unlicensed gambling businesses that transact with consumers in Great Britain.
TGP have been the subject of enforcement action by the Commission before in relation to white-label agreements and on 5th April 2023 had sanctions imposed for a number of failings including having inadequate policies and procedures in place in relation to due diligence undertaken prior to white label agreements and not adequately considering money laundering risks posed by B2B relationships:
On that occasion TGP received an official warning and had additional conditions imposed on their licence.
Andrew Cotton, Senior Associate in our RCG Team comments:
“Today’s information notice also acts as a warning to all football clubs of their own due diligence obligations before entering into sponsorship agreements with unlicensed gambling sites.”
Should you require any assistance in relation to the issues raised in this article, please contact a member of our team.
