Stake will exit the Great British online gambling market next month after its logo appeared in a video shot by an adult actress outside a university.
The GB Gambling Commission investigated the video featuring actress Bonnie Blue outside Nottingham Trent University.
Stake, which operates in the UK via a white label agreement with TGP Europe, is promoted in an advert throughout the video.
TGP Europe, which the Commission said it has taken enforcement action against before, has agreed to stop accepting new player registrations.
It will also remove redirection links from Stake’s dotcom platform to its UK platform ahead of ceasing operations entirely by March 11.
A Stake spokesperson told InterGame: "Stake has made a strategic decision in mutual agreement with TGP Europe to exit white label agreements and focus on securing local licenses through our in-house platform and operations, building upon our growth in key regulated markets such as our recent expansions into Italy and Brazil."
InterGame has also contacted TGP Europe for comment.
The deal will have ramifications for Premier League football club Everton, whose main shirt sponsor is Stake.
The Gambling Commission said it will write to Everton warning of the “risks of promoting unlawful gambling websites.”
The regulator will “seek assurances” from Everton and two other clubs, which it does not name in the statement, that they have carried out due diligence on white label partners and that consumers in Great Britain “cannot transact with the unlicensed sites.”
The Commission will “independently verify” that clubs have demonstrated that geo-blocking measures have been successful because some blocking can be “easily bypassed by by use of tools such as a virtual private network (VPN).”
Club officers may be liable to prosecution and subsequent fines or imprisonment if they promote unlicensed gambling sites, the letter will say.
“When an operator leaves the British gambling market we expect an orderly closure of its website to consumers in Great Britain and this includes providing consumers with clear information on how to obtain their funds,” the Commission concluded.
The Gambling Commission has stepped up its monitoring of supplier and operator due diligence after it identified Evolution games being accessible from the UK through illegal operators.
