CRYPTO CASINO
contributing to their growth seems to have flown under the radar of regulators, although to be fair to them, there are limits as to what they can do. In the UK and US, gambling on offshore unregulated websites via a VPN is not illegal. Offshore operators, however, may still be committing an offence although enforcement is thorny. While the promotion of illegal gambling is an offence in the UK, Stake could argue that its content is not intended for British audiences placing it outside the reach of the UK Gambling Commission. This seems to have been recognized by the Commission itself who say that while it issued 287 cease and desist notices to providers “accepting and advertising crypto as a deposit method in the UK” in 2024, “the responsibility for enforcing laws in other jurisdictions rests with authorities in those jurisdictions”. What’s wrong with crypto casino? It goes without saying that a completely unregulated crypto casino, with no spending limits, affordability checks or responsible gaming measures in place, is an unhealthy place for gamblers. It is particularly dangerous for underage or problem gamblers, but some claim the dangers go much further. Campaigners warn that the cryptocurrency environment brings added hazards. Crypto, whose value is inherently volatile, compounds the risks, they say. When the value of the currency goes up, gamblers are tempted to see this as passive income they can bet with. When it falls, they gamble more to chase their losses. Matthew Showell says that whilst influencer marketing is extremely effective at bringing in players this, too, carries risks. “Slots content often doesn’t reflect reality and it normalizes risky behavior with huge bets and long sessions, focusing only on wins while minimizing or ignoring losses. Influencers are gambling with money provided by the casino, but they don’t have an obligation to disclose that to viewers. Some promote sites that don’t have good KYC or other security protocols. And since this content is on social media, it reaches all kinds of people, even in jurisdictions where gambling is supposed to be tightly controlled.”
As well as social media channels several crypto casinos are using sports sponsorship to target players. It is here that things may be changing with an announcement last year from the UK government that it intended to take a harder line with white label gambling operations. This process has continued with departure of white label giant TGP Europe just the latest to exit from UK market. It has also cast a spotlight on a number of questionable practices involving English Premier League clubs and Asian crypto casinos. TGP is behind several Asian-facing UK Premier League sponsors and is allegedly linked to jailed junket tycoon Alvin Chau. It gave up its licence in the Isle of Man after being told it would have to pay a £3.3m penalty and improve its behaviour if it wanted to continue trading. TGP provided white-label services to betting brands including major players Stake, shirt sponsor of Everton football club, Roobet (Chelsea) and Rollbit (Leicester City) as well as bj88, SBOTOP, Sportsbet.io, DEBET and W88, all top-flight football shirt sponsors. TGP’s exit leaves the clubs with unlicensed brand logos emblazoned on their shirts and potentially facing fines or personal prosecutions for due diligence failures. The TGP case reignites debate around the UK’s white label system, a long-criticized framework that allows license- holding firms to rent out their regulatory permissions to foreign-facing brands. While marketed as a compliant gateway to global expansion, critics have argued that the model invites regulatory arbitrage and facilitates access to the UK market for firms that would not otherwise meet licensing standards. The 2023 Gambling White Paper identified white labels as a regulatory loophole which Gambling Minister Fiona Twycross has indicated the government intends to close. For now, TGP’s withdrawal has triggered a reputational crisis for the Premier League clubs involved which may force them to re-evaluate the true cost of their partnerships with Asian betting firms. For operators who rely on third-party licensing to sustain their UK presence, the Gambling Commission’s actions signal it will no longer tolerate business models that outsource responsibility. Any operator pursuing white label deals in the UK can likely now expect greater scrutiny – not only from
PAGE 57
IMGL MAGAZINE | JUNE 2025
Made with FlippingBook flipbook maker