Key points:
- Williams discusses why Stake’s adverts violated the CAP Code
- He also covers how this decision against Stake could be applied to other operators
- There are several online casinos operating white-label businesses which attract customers to international, unregulated platforms
After the operator’s recent advertising blunders, the Gambling Commission stepped in yesterday to announce that Stake would be leaving the UK market within the month.
While Stake had been at the forefront of questionable undisclosed adverts across social media for several weeks by this point, it was an advert featuring adult actress Bonnie Blue which was seemingly the last straw for the Commission.
Richard Williams, Keystone Law Gambling Partner, reached out to Gambling Insider to discuss what potential ramifications this ruling could have on the wider industry.
“Whether officially sanctioned or not, it’s difficult to know where to start with regulatory concerns about Bonnie Blue’s sponsored advertising of betting brand Stake outside Nottingham Trent University,” Williams said. “Certainly, it’s linking gambling to seduction and sexual success, which is a breach of the CAP Code.”
The advert saw Blue standing outside of the university with a sign asking for student volunteers to film lewd acts with her.
Williams continued: “Whilst this event will generate huge publicity for the Stake brand, it may be the end of the road for Stake in Great Britain (GB) and possibly for all GB-facing white labels of international gambling brands.
“The Gambling Commission is clearly cracking down on brands who are advertising in GB and unlawfully accepting British customers to their .com businesses.”
One of the biggest complications regarding this decision is the fact that Stake is currently the front-of-shirt sponsor for Everton, a prominent football team in the Premier League.
Williams argued: “It’s all well and good saying ‘we have a white label arrangement serving the UK market,’ but if those customers are actually using VPNs to register on the brand’s international website (often with ineffective geoblocking and residency checks) then advertising in GB is just attracting British customers to the .com business.
“The same argument can be made for football shirts sponsorships, such as Stake with Everton. These sponsorships only work where a licensed white-label version of the brand is available in GB.
“Once the white label no longer exists, there is a risk that advertising the brand in GB when it is not licensed to operate by the Gambling Commission, is a criminal offence under s.330 Gambling Act 2005 (advertising unlawful gambling). White labels have previously cured this problem, but this option may no longer be available.”
Good to know: Richard Williams is a specialist in gambling, licensing and regulatory law, who has worked with multinational gambling operators, including casinos, betting shops, online gambling platforms and software developers
The issue with Stake was that the operator signed a deal with TGP Europe to run Stake.uk.com, which attracted many customers to the international cryptocurrency website which wasn’t technically licensed by the UK Gambling Commission.
“International brands are going to have to improve their procedures to ensure they are not committing offences by accepting British customers,” Williams concluded. “The other alternative is for the Gambling Commission to allow crypto-focused gambling operators to obtain an operating licence in GB, which it has always resisted.
“I am sure the majority of operators don’t want to operate illegally, but if they accept cryptocurrency as a method of payment, they currently don’t have an option of getting a licence in Britain. This is a classic catch-22 situation.”
