British players are not supposed to be able to wager with cryptocurrency, but an investigation by the Observer has uncovered evidence that the consumer safeguards may not be effective.
The report noted that Stake.com, which specializes in cryptocurrency gambling, has a £10 million-a-year sponsorship deal with Everton Football Club, and the company’s logo is emblazoned on their shirts. Stake doesn’t just sponsor sports teams, it also has a partnership with Canadian rapper Drake and sponsors the Ultimate Fighting Championship (UFC) and Formula One drivers.
This is true despite the fact that it is illegal to bet in the U.K. and U.S. with cryptocurrency. Although Stake insists that it has a “stringent compliance process” to prevent adults and minors from violating those laws, the Observer was able to use a VPN to access Stake.com’s gambling service from the U.K.
When asked for age verification, the reporters uploaded a photo of a packet of throat candy, instead of a legitimate ID. Once inside, the reporters bought cryptocurrency, deposited it in an account and played on Stake.com’s online slot machines. They then moved the funds they didn’t lose into an online bank account.
The reporters were also able to buy cryptocurrency on one bank account and move the funds into another, a form of money laundering.
Eventually Stake.com caught up with the subterfuge. Two days after the account was opened, Stake shut it down.
Asked to comment, Stake.com said in a statement: “As with all companies in the sector, Stake.com experiences unauthorized users attempting to evade geo-blocking through VPNs. Stake is aware of one account that was recently opened following the use of a VPN from the UK and the submission of false address and other false user information, all in violation of the company’s terms of service. This account was detected by Stake’s internal compliance processes and shut down.”
Stake added, “Stake.com utilizes anti-money laundering measures on its site. Fiat to cryptocurrency exchange services are offered by third-party providers (not Stake.com), who also have their own compliance processes and requirements.”
