Stake Pulls Out of UK Following Social Media Investigation
Crypto gambling operator Stake has exited the U.K. market following an investigation by the U.K. Gambling Commission found its branding was being featured in videos made by an adult film actress and was plastered across social media.
Stake said it agreed, as part of a strategic decision, to end its white-label partnership with TGP Europe Limited (TGP) and shut down its U.K.-facing site. TGP will complete a full shutdown of the site by March 11.
Stake has been the front-of-shirt sponsor of English Premier League football club Everton since the 2022-23 season.
The commission said it would contact Everton, as well as two other clubs partnered with unlicensed betting sponsors, to warn them of the risks of promotion of illegal sites. These teams have been warned to carry out their due diligence to ensure the brands they are displaying do not provide gambling activities to U.K. consumers.
Superbet Secures Billion-Dollar Blackstone Refinancing Deal
Romanian sports betting group Superbet last week secured a $1.34 billion refinancing agreement with its existing investors Blackstone and a number of funds and accounts managed by HPS Investment Partners (HPS).
Superbet said on Feb. 7 the funds would support growth in new markets like Brazil and M&A optionality. It will also further investment in innovative technologies.
According to a statement, recent funding from its consortium of investors has enabled Superbet to invest heavily in its proprietary technology platform. It has also been able to accelerate growth across Europe.
Hans-Holger Albrecht, Superbet’s chairman, said his company is “delighted” with the deal.
“The fact that we have two blue-chip investors, Blackstone and HPS, is not only a milestone for the company, but also, given our strong balance sheet, is something that enables us to continue our expansion story, driven by our unique tech and product position,” he said.
Latvian Operators to be Compensated for Covid Gambling Shutdown
Licensed gambling operators in Latvia will be granted up to $7.3 million in compensation from the state for having their operations shut down during the Covid-19 pandemic.
Online gambling was made illegal, alongside the sale of alcohol online in 2020 in Latvia, despite both activities being carried out without the risk of spreading the infection.
The Latvian Interactive Gambling Association (LIAB) released a statement on Feb. 6 announcing the Senate Court’s decision. A number of operators fought the decision to ban online gambling and have won their relevant cases.
“As a result of the legal proceedings, it was found that the law issued by the Saeima and the subsequent Lottery and Gambling (IAUI) decision adopted on its basis are unlawful, and the state will have to compensate the industry for the losses caused by these decisions,” the local trade body said.
“The politicians’ unlawful decision not only caused losses to the state budget, but also exposed players to a very high risk of illegal gambling. Latvia was the only country in the world that banned licensed interactive games during the Covid-19 pandemic.”
