Stake, the cryptocurrency-based online casino, is once again at the centre of controversy. A digital advertisement for its services was spotted in a shopping centre in Malta, even though the platform has no licence issued by the Malta Gaming Authority (MGA). This incident raises questions about the company’s practices and its compliance with international regulations.
Michael Schmitt has provided an update on this violation of Maltese law on the LinkedIn platform.
Flagrant violation of Maltese law
A digital advertisement for Stake was spotted at the Tigné Point Shopping Mall in Sliema. The poster, which openly promotes the platform’s online gaming services, is in direct breach of Maltese law. According to the MGA’s Commercial Gaming Communications Regulations, only MGA-licensed operators are permitted to advertise in Malta. In the absence of this authorisation, Stake is in direct breach of the law.
This offence is far from trivial. The Gaming Act (Chapter 583 of the Laws of Malta) provides for severe financial penalties and administrative measures against operators who fail to comply with advertising and licensing regulations. The situation is all the more worrying given that this advertisement was broadcast in a place frequented by minors and vulnerable persons. The Maltese authorities are now being called upon to take firm action to maintain the integrity of their regulatory system.
The authorities must act
Illegal advertising in Malta is not just a minor offence; it is symptomatic of Stake’s wider strategy of systematically breaking the law in multiple jurisdictions.
To maintain its credibility as a regulatory body, the Malta Gaming Authority must take immediate and decisive action. Unauthorised digital advertising must be removed immediately and any local entity that facilitated these advertising efforts should be held accountable. The MGA should open a formal investigation to understand how an unauthorised operator was able to advertise in a public space and apply appropriate sanctions.
Given Stake’s history of non-compliance, cooperation with other international regulators seems necessary to curb its illegal activities.
Stake’s blatant disregard for the law represents a threat to the integrity of the gambling market. By openly displaying its advertising in a Maltese shopping centre, the company is sending out a worrying message about its willingness to defy the regulations.
The murky role of cryptocurrencies
One of the main levers used by Stake to evade regulatory scrutiny is its heavy reliance on cryptocurrency transactions. Using digital assets such as Bitcoin, Ethereum and Litecoin, the platform avoids traditional financial controls and anti-money laundering regulations.
This mode of operation raises serious concerns about its potential involvement in illicit activities such as money laundering or fraud.
In addition, Stake operates from jurisdictions with lax regulation, notably Curaçao, a territory known for its lack of rigour when it comes to gambling supervision. This allows Stake to operate in a regulatory grey zone, offering its services to players around the world without complying with the legal requirements imposed by the main gambling regulatory authorities.
A global scheme to circumvent regulations
This publicity in Malta is not an isolated incident. Stake has been implicated in several breaches of gambling laws around the world, illustrating an aggressive and often illegal expansion strategy.
- Australia: The Australian Communications and Media Authority (ACMA) has taken action against Stake for offering unlicensed gambling services to Australian residents, in breach of the Interactive Gambling Act 2001.
- United Kingdom: Despite strict regulations from the UK Gambling Commission (UKGC), Stake has been operating in grey areas through affiliate marketing and unauthorised promotions. Recently, Stake.co.uk was forced to leave the UK market.
- United States: The platform targeted US customers despite clear restrictions, using complex offshore licences to circumvent federal and state gambling laws.
- Canada: The Ontario regulator fined Stake for unauthorised operations, demonstrating once again its disregard for local legal frameworks.
We have already pointed out several controversial advertising techniques of Stake, such as the use of memes published on popular X (former Twitter) accounts, or fake AITHA stories on reddit.
Faced with this repeated pattern of non-compliance, Michael Schmitt calls on regulators around the world to become aware of the danger that Stake represents. Its model based on cryptocurrencies and the exploitation of legislative loopholes allows it to evade legal obligations and jeopardize consumer protection as well as the integrity of the gambling market.
If nothing is done, Stake and other similar operators will continue to defy regulations with impunity, undermining the authorities’ efforts to establish a responsible and secure gambling environment.