Everton, Leicester Slammed Over Stake.com, BC.Game Sponsorship
An anti-gambling organization has contacted English Premier League clubs Everton and Leicester, alleging that they are promoting unregulated gambling companies.
The Coalition to End Gambling Ads (CEGA) has urged the UK Gambling Commission (UKGC) to intervene regarding the two teams, asserting that Stake.com and BC.Game, jersey sponsors for Everton and Leicester, respectively, can be easily accessed from the UK using a virtual private network (VPN).
In November 2022, Everton finalized a club-record sponsorship agreement worth £10 million with Stake.com. For its global clientele, Stake.com primarily functions as an unregulated cryptocurrency gambling platform. Until February of this year, the brand provided licensed gambling with fiat currency in the UK through the Isle of Man-based white-label operator TGP Europe.
In February, the company consented to relinquish its UK license after the UKGC raised concerns about a social media advertisement showcasing porn actress Bonnie Blue that aimed at younger audiences.
Simultaneously, BC.Game, another crypto platform functioning as a TGP Europe white-label partner, consented to exit the UK late last year after being declared bankrupt in Curacao, where its license was also annulled.
White-Label Debate
The white-label framework enables gambling firms to function in the UK indirectly. White-label services such as TGP develop a site featuring an operator's branding, while the content and services offered are controlled and managed under the provider's license.
The system has faced criticism for encouraging a surge of sportsbooks targeting Asia that aim to leverage English Premier League sponsorships as a gateway to markets like China, where gambling promotions are prohibited.
A video created by CEGA and viewed by The Athletic reveals that CEGA staff accessed Stake.com via a VPN prior to uploading an image of the infamous Bonnie Blue ad as their avatar. The workers could subsequently place bets on the platform with cryptocurrency.
Within an hour, Stake's systems detected an ID problem and limited the account until a new ID is provided.
CEGA staff could also reach the BC.Game platform using only a VPN and an email address, without needing to provide any form of identification.
‘Blatantly Deceptive’
In a statement to The Athletic, Stake.com asserted that it considers compliance and regulatory integrity “extremely important,” noting that CEGA’s attempts to circumvent its controls were “dishonest… entirely fraudulent and unlawful.”
"They knowingly used a VPN to bypass geographic restrictions. They intentionally falsified personal details, including name, address, and identity. They deliberately misled Stake by accepting T&Cs they were in clear violation of. They fraudulently created an account using fake credentials, engaging in identity fraud. They attempted to conduct an illegal transaction, despite being in violation of multiple safeguards,” the spokesperson said, adding that the system worked because “the fraudulent account was swiftly flagged and permanently closed.”
Both Everton and Leicester have not replied to CEGA’s letter, but they previously stated that they believe they are in compliance with UKGC regulations.
In February, the UKGC warned that “club officers may be liable to prosecution and, if convicted, face a fine, imprisonment or both if they promote unlicensed gambling businesses that transact with consumers in Great Britain.”
