Stake.com is an online casino and sports betting platform that has gained massive global attention since its launch in 2017. As a decentralized site, it accepts wagers in Bitcoin, Ethereum, and other cryptocurrencies. Stake also built a reputation for its user-friendly platform, its wide selection of betting options, and appealing promotional offers. As a result, the site quickly became one of the major players in the iGaming space. Its growth was exponential, especially in areas where the adoption of cryptocurrency was increasing.
Stake has also made several endorsements in the world of sports, entertainment, and more. Apart from its controversial sponsor deal with Everton FC, Stake has also signed contracts with numerous sports teams and personalities across the globe. This includes UFC fighters, soccer teams in other countries, and even a sponsorship deal with Brazilian football club Atletico Mineiro. However, the company has faced controversy of late in the UK, primarily considering its branding, which resulted in the company disabling its services in the UK.
Reason for Ceasing Operations in the UK
The UK Gambling Commission UKGC has ordered Stake to shut down its operations within the UK borders after flagging numerous issues with branding and marketing. At the crux of this controversy is Stake’s logo exhibited in a video by an adult actress who was making a disputable remark. The situation created an uproar led to tighter controls by regulators.
This is not the first occasion Stake has got into trouble with regulators. The company has in the past suffered various fines for advertising malpractice as well as breaches in regulation in other regions. Such past indiscretions worsened Stake’s already difficult position in the UK market, which is notoriously strict for regulatory compliance.
The GBGC inquiry attempts to determine if Stake’s marketing practices within the adult industry are in breach of the UK’s robust advertising and branding regulations, especially those governing content inappropriate for children. As a result of Stake ultimately deciding to suspend its UK activities, the allegations were being supported.
Impact on Stake’s Business and Reputation
Stake will be severely affected by the cessation of operations in the UK, in particular, because this is a key region for online gambling. The gambling market is very developed in the UK, and for a US-based company such as Stake, this is a big blow.
Furthermore, Stake’s sponsorship of Everton FC, one of the most marketed clubs within the English Premier League, is now in the spotlight. This partnership that Stake and Everton FC entered in 2022 has certainly brought more attention to Stake in the United Kingdom but now makes little sense with the company shutting its business in the region. Everton FC, which has become increasingly internationalized, may have to sever ties with Stake as the investigation unfolds.
Backlash From A Bad Decision
The decision to stop working within the UK jurisdiction, which was a requirement from the UK Gambling Commission, stems from a brand blunder and Stake’s logo being prominently featured in a viral video. Stake is already under the scrutiny after the company’s history of being fined. These facts leave Stake in a dangerous position.
