Personalised emails and Telegram messages seen by Affiliate Leaders suggests Stake could be in breach of GDPR rules, just days after it secured a licence in Denmark.
Stake’s shift of focus into regulated markets signalled a transition in the company’s strategy. However, marketing content seen by iGaming Expert and Affiliate Leaders indicates the operator could face regulatory issues in Denmark, just days after it secured a licence.
The decision to obtain a Danish licence raised eyebrows as it is considered one of the toughest regulatory frameworks in Europe – a challenge acknowledged by Peter Eugen Clausen, managing director at Stake Denmark.
He told iGaming Expert: “Denmark stood out to us because it combines regulatory maturity with a digitally sophisticated player base. Having been one of the first markets to regulate with the Danish Gaming Act coming into force in 2012.”
Operators in Denmark are strictly limited to a list of licensed suppliers, which can be found on the gambling authority’s website. Screenshots seen and verified by iGaming Expert showed that Stake is offering games that aren’t licensed in the Danish market, including a number from the developer Sexy Rabbit.
Screenshots also showed ‘Burst Games’ on the Stake website, which are fast-paced casino or crash games and are subject to strict regulation by the Danish watchdog.
Promotional messages on Telegram and emails sent to players who have previously engaged with Stake.com, seen and verified by iGaming Expert, revealed the firm could be risking a significant GDPR breach.
The messages, which have come from a ‘mail.stake.com’ address, appear to offer personalised welcome bonuses such as 75 KR (£8.77) and 1,000 KR (£116.99) for these players to register on Stake.dk – the operator’s newly launched site under its Danish licence – with their ‘stake.com email address’.
Stake.com was among 49 illegal gambling websites blocked by Denmark’s gaming regulator in July 2023 because it was offering gambling services without a licence.
Concerns have been raised that the operator allegedly failed to properly obtain GDPR consent from former players, after getting a licence and continued to use player data obtained from when it was an unlicenced operator in Denmark.
This could potentially put the operator at risk of breaching articles five and six of GDPR, which mandates that the purpose of collecting data must be clearly stated, and if this changes, then users should be notified.
Stake described the decision to seek a licence in Denmark as one of the first moves in the evolution of its global expansion strategy towards placing a “greater emphasis on regulated, high-value markets”.
Clausen added the move showcases an ability to ‘tailor its operations to local regulatory and cultural expectations’. However, an early breach of its licensing conditions in Denmark could threaten to derail that roadmap.
Questionable marketing
Previously, a marketing blunder led to Stake exiting the UK after the firm’s logo appeared in a stunt involving the controversial adult film star Bonnie Blue.
The marketing video, set outside Nottingham Trent University, prompted an investigation from the UK Gambling Commission after it went viral across social media.
Following the investigation, TGP Europe Limited (TGP) – which operated Stake in the UK under a white-label arrangement – confirmed it was shutting the site.
Meanwhile, the Canadian rapper Drake has also received backlash for his association with Stake.us, given that the firm presents itself as a social casino due to restrictions on online casino gaming in the US.
iGaming Expert has approached Stake for a comment, but the operator is yet to respond.
Story broken by Jyoti Rambhai, Christian Lee and Joe Streeter and first published on Affiliate Leaders’ sister title, iGaming Expert.
