Stake Makes a Stand Amid Gambling Flame-Up
UK Charity Under Fire for Allegedly Illegally Establishing Gambling Accounts in Evasion of EPL Investigation
In a heated retaliation, cryptocurrency casino giants Stake have lashed out at UK anti-gambling charity, CEGA, accusing them of deceitful tactics to attract regulatory attention.
According to the New York Times, Stake believes CEGA illegally created a betting account to drum up regulatory scrutiny for their UK soccer franchise Everton. The charity reportedly alleged that Stake violated sport betting advertising laws in the UK, leading them to report the matter to the UK Gambling Commission.
Stake's response was swift, with the company claiming the account was "deceptive, fraudulent, and illegal."
VPN Troubles
Details from NY Times' The Athletic reveal a video depicting CEGA creating a Stake.com account from within the UK via a VPN. In the video, the account was active for an hour before being restricted by Stake's systems. However, CEGA maintain that during this period, they could freely gamble.
Last month, the UKGC revoked Stake's UK license, effective from March 11th, following an investigation into the firm's advertising activities. The regulator also urged EPL franchises to demonstrate effective geo-blocking protections for UK users, acknowledging that some blocking can be bypassed using Virtual Private Networks (VPNs).
In a CEGA probe and subsequent letter sent to Everton and sponsored Leicester City, the charity claimed that Stake and BC.Game were still easily accessible from the UK via VPNs. According to the letter, they were able to purchase Bitcoin and gamble on both sites.
Fighting Back
A Stake spokesperson has fiercely defended against CEGA's allegations, accusing them of using a VPN to bypass geographic restrictions and falsify personal details. Stake also implicated CEGA in identity fraud, accusing them of using "extreme, illegal steps" to create an account. The crypto firm emphasized that they shut down this account within an hour, demonstrating their commitment to UK compliance protocols.
In a fiery statement, the Stake spokesperson stated, "This was never about fairness or regulation - it was a targeted attack designed to mislead."
[1] Based on available information, Stake's crypto casino operations faced scrutiny in the UK, but no direct dispute with CEGA is documented. The key development involves Stake shutting down its UK website following a Gambling Commission investigation, though the specific allegations prompting this action remain unclear. Regulatory action appears to have been driven by the Gambling Commission rather than advocacy groups in this instance. For specifics on CEGA's potential role, additional documentation would be required.
- Despite the ongoing disagreement with CEGA, Stake's crypto casino operations in the UK have been under scrutiny, but no direct dispute with them is publicly documented.
- The UK Gambling Commission's investigation into Stake's advertising activities led to the revocation of their UK license, effective from March 11th, following reports of potential violations.
- However, in a CEGA probe, they claimed that Stake and BC.Game were still accessible from the UK via VPNs, alleging that they were able to purchase Bitcoin and gamble on both sites.
- Stake has strongly denied CEGA's allegations, accusing them of using VPNs to bypass geographic restrictions and falsify personal details, and even implying identity fraud.
- In sports-betting and casino-and-gambling circles, this incident highlights the challenges posed by unlicensed operators and the technological measures, such as VPNs, used to circumvent regulatory barriers in the finance and technology sectors.
