Everton and Leicester City Face Backlash for Unlicensed Gambling Sponsorships
Everton and Leicester City Under Fire for Sponsorships with Unlicensed Gambling Brands
The Coalition to End Gambling Ads (CEGA) has criticized Premier League clubs Everton and Leicester City for allegedly backing unlicensed gambling operators through their sponsorship deals.
The UK Gambling Commission (UKGC) has previously highlighted the legal implications for clubs promoting unlicensed gambling activities. Notably, the brands Stake.com and BC.Game, acting as sponsors for Everton and Leicester respectively, reportedly remain accessible from the UK through loopholes such as virtual private networks (VPNs).
Despite Stake.com having suspended its UK operations amidst controversy in February, their logo still appears on Everton jerseys. The club entered into a record-breaking sponsorship worth £10 million with Stake.com in November 2022. This platform is primarily recognized as an unregulated cryptocurrency gambling site globally, although it had provided services under a UK license through TGP Europe until early 2023.
The company’s UK license was forfeited following UKGC objections to a social media advertisement featuring adult film actress Bonnie Blue, which was aimed at attracting younger audiences.
BC.Game’s Withdrawal from the UK Market
Similarly, BC.Game, another gambling platform that operates on a white-label basis with TGP Europe, decided to cease its UK operations after facing bankruptcy proceedings in Curacao, which also led to the revocation of its operating license.
The White-Label Gambling Model: A Double-Edged Sword
The white-label gambling system allows companies to function under another operator’s license, creating a brand-specific interface while the underlying services are managed by a licensed provider. While this model can foster innovation and broaden market access, it has faced substantial criticism. Detractors argue it facilitates the entry of overseas sportsbooks into the UK market, particularly those targeting regions where gambling is prohibited, such as China.
In a revealing video seen by The Athletic, CEGA employees demonstrated their capability to access Stake.com using a VPN. They succeeded in gambling on the platform with cryptocurrency while circumventing age and identity checks. Despite rapid detection of irregular activity by Stake.com’s security measures, this incident raised alarm about the effectiveness of current regulatory frameworks.
Accusations and Responses
CEGA’s investigation illustrated that its representatives could not only create accounts using deceptive methods but could also participate in gambling without stringent identity verification on platforms like BC.Game.
In response to these allegations, a spokesperson from Stake.com vehemently defended the company’s operational integrity, describing CEGA’s attempts to navigate around security measures as “outright fraudulent.” They emphasized that these deceptive actions violated multiple regulations, asserting that their system efficiently identified and halted fraudulent accounts.
Despite the seriousness of these claims, both Everton and Leicester City have yet to publicly address CEGA’s correspondence. Previously, both teams maintained that their operations align with UKGC regulations.
In light of these developments, the UKGC has issued stern warnings regarding the potential legal consequences for club officials who promote unlicensed gambling services. They may be subject to prosecution and could face fines or imprisonment for engaging in such activities.
Key Takeaways
- Both Everton and Leicester City are facing scrutiny for their sponsorship deals with Stake.com and BC.Game.
- The UK Gambling Commission has flagged potential legal consequences for promoting unlicensed gambling.
- Stake.com and BC.Game’s operations have raised concerns about compliance and accessibility through VPNs.
- The white-label model has sparked debate on regulatory effectiveness in the UK gambling market.
Conclusion
The controversy surrounding Everton and Leicester’s sponsorships highlights ongoing challenges in regulating the gambling industry, especially concerning online platforms and their accessibility through various loopholes. As legislation evolves, clubs and operators alike must navigate a complex landscape to ensure compliance and protect consumers.
