Stake

Stake.com is a cryptocurrency-based online casino and sports betting platform launched in 2017. It operates primarily with digital currencies for deposits, wagers, and withdrawals, positioning itself at the forefront of the crypto gambling industry. Although barred from major markets such as the United States, United Kingdom, and much of Europe (until obtaining some local licenses), it has grown into one of the world’s largest offshore crypto casinos. In 2022, the platform generated approximately US$2.6 billion in gross gaming revenue, reportedly ranking seventh among gambling companies worldwide by revenue. It has become widely recognized through aggressive marketing, high-profile sponsorships, and celebrity gamblers, standing out for merging two controversial domains—online gambling and cryptocurrencies—into a single influential enterprise.

History and Background

Founding

Stake.com was founded by Edward “Ed” Craven (an Australian) and Bijan Tehrani (U.S.-born) in 2017. The roots of the platform trace back to the duo’s earlier ventures. As teenagers, Craven and Tehrani met through the online game RuneScape, where they organized an in-game betting ring until the developers banned such activity in 2011. In 2013, they co-created Primedice, a Bitcoin-based dice gambling website that gained early traction in the “provably fair” crypto gaming scene. Profits from Primedice gave them the capital and experience to expand. By 2016, they established a development studio called Easygo in Melbourne and assembled a team to build a more ambitious crypto gaming platform, culminating in Stake.com’s launch in 2017.

Growth Milestones

Shortly after launch, Stake.com expanded from a handful of in-house dice games to a wide catalog of online casino games (slots, roulette, blackjack), all using cryptocurrency betting. In 2019, the platform introduced a sportsbook, allowing crypto wagers on major sports and esports events. Its user base grew strongly in regions like Latin America, Canada, Southeast Asia, Japan, and Eastern Europe, where online gambling laws were more lenient or operated in a gray area.

Timeline of Notable Events

• 2017 – Stake.com goes live: Co-founded by Craven and Tehrani, drawing on lessons from Primedice.
• 2019 – Expansion of games: Stake adds thousands of slot and table games plus a sportsbook feature.
• 2020 – Rapid growth via streaming: Sponsorship of online gambling streamers on platforms like Twitch drives significant new user acquisition; reported GGR around US$100 million.
• 2021 – UK license: Stake obtains a UK Gambling Commission license, launching Stake.uk.com (fiat-only). Becomes principal jersey sponsor of Watford F.C. in the English Premier League.
• 2022 – Celebrity & mainstream deals: Gross revenue surpasses US$2 billion. Signs brand ambassador Sergio Agüero, partnerships with UFC champions, and a US$100 million/year deal with rapper Drake. Later that year, Twitch bans Stake from streaming, prompting Stake’s founders to help launch Kick.com.
• 2023 – Major sponsorships & security breach: Stake sponsors Alfa Romeo’s Formula One team (renamed “Alfa Romeo F1 Team Stake”) and seals a record shirt deal with Everton F.C. in the Premier League. In September 2023, a hack attributed to North Korea’s Lazarus Group compromises US$41 million of Stake’s hot-wallet crypto, which the company covers from its reserves.
• 2024 onward – Regulatory pivot: With Curaçao overhauling eGaming rules and many countries tightening licensing, Stake increases compliance, KYC, and pursues more regulated local sites. Alfa Romeo departs F1 at season’s end, leaving “Stake F1 Team” as the nominal name before transitioning to Audi.

Ownership and Key People

Stake.com remains privately held, owned primarily by co-founders Edward “Ed” Craven and Bijan Tehrani, who split the business 50/50. Both are listed among the youngest self-made billionaires globally, each with an estimated net worth exceeding US$1.3 billion by 2023. Craven (Australian, born c.1995) oversees operations from Melbourne, while Tehrani (U.S.-born, c.1993) is based abroad. Their earlier collaboration on Primedice laid the groundwork for Stake’s rapid growth.

The company’s CEO is Mladen Vuckovic, who manages day-to-day operations and international expansion. Stake’s corporate structure relies on various international entities—for instance, an N.V. company licensed in Curaçao, as well as offices in Australia (Easygo), Serbia, Cyprus, and elsewhere—to comply with different regulatory requirements.

Business Model and Operations

Stake.com’s revenue stems from the house edge on casino games and sportsbook margins, all denominated in cryptocurrency on its main global site. In 2022, it reportedly generated around US$2.6 billion in gross gaming revenue, surpassing major traditional betting companies.

Cryptocurrency-Only Main Platform

The global version of Stake.com exclusively accepts cryptocurrencies (e.g., Bitcoin, Ethereum, Litecoin, Dogecoin, Ripple, etc.), enabling near-instant deposits/withdrawals and attracting users drawn to pseudonymity and fewer traditional banking constraints. In regulated offshoot sites (e.g., Stake UK), fiat is mandated by local law, so crypto is disallowed there.

Games and Sportsbook

Stake launched with a few “provably fair” house games (e.g., dice) and expanded to include thousands of slot titles, table games, live-dealer offerings, poker, and a robust sportsbook covering major sports and esports. “Stake Originals” remain popular among crypto-enthusiasts for their transparent algorithms. The sportsbook offers pre-match and in-play bets on global competitions and other novelty markets.

VIP Loyalty and Affiliate Programs

Stake’s tiered VIP program grants cashback (rakeback), bonuses, and VIP hosts to high-volume bettors. The affiliate system awards standard commissions of ~10% of the house edge from referred players, fueling aggressive user acquisition via content creators, review sites, and social media.

Marketing and Streaming Partnerships

A defining factor in Stake’s growth has been its partnerships with streamers on Twitch (before the 2022 ban) and subsequently on Kick.com, a Stake-backed streaming platform launched to allow casino streams. Stake has sponsored multiple high-profile gambling streamers—some receiving reported seven- to nine-figure contracts—to broadcast slot play and refer new gamblers. This approach contributed significantly to Stake’s user surge but ignited controversy over consumer protection and promotional ethics.

Geographic Reach

Stake.com primarily operates in markets with permissive or ambiguous online gambling laws, especially parts of Latin America, Canada (outside Ontario), Southeast Asia, Russia, and Japan. It geo-blocks countries with stricter laws (e.g., United States, Australia, much of Europe) although allegations persist that some users bypass these bans via VPN.

Regulatory and Legal Landscape

Online gambling regulations vary widely by country, shaping Stake’s strategy of using a Curaçao eGaming license for the main site while seeking local licenses (UK, Italy, and potentially others) for regulated markets.

Licensing and Jurisdictional Restrictions

Stake.com operates under a Curaçao license, commonly regarded as more lenient than many Western jurisdictions. Over time, Stake has introduced region-specific versions of its site—e.g., Stake.uk.com with a UK Gambling Commission license (fiat-only). Other expansions include obtaining approval in Ontario, Canada, and exploring entry into further regulated markets in Europe and Latin America.

Compliance and KYC

Initially known for relatively anonymous play, Stake has ramped up KYC requirements and responsible gambling measures, especially in its regulated offerings. In the UK, for instance, full identity verification and deposit limits are enforced. The company has joined the Crypto Gambling Foundation, pledging transparency and fairness.

Lawsuits and Disputes

Stake.com’s largest legal challenge stems from a $400 million lawsuit filed by Christopher Freeman, a former associate claiming he was cut out of the business. The suit also alleges that Stake knowingly facilitated illegal U.S. betting via VPNs. Stake’s founders call these allegations baseless, but the case is ongoing.

Sponsorships and Partnerships

Stake is noted for high-profile sponsorships in sports and entertainment, aimed at brand-building rather than direct ROI.

Sports Team Sponsorships

• Football (Soccer): Principal shirt sponsor of Watford F.C. (2021–22) and Everton F.C. (2022–). The Everton deal is a record sponsorship for the club, reportedly around US$12 million per year.
• Formula One: Title sponsor of the Alfa Romeo F1 team for 2023. The team is rebranded “Alfa Romeo F1 Team Stake,” transitioning to “Stake F1 Team” in 2024 after Alfa Romeo’s departure.
• UFC: Official betting partner in select regions; brand ambassadors include champions Israel Adesanya and Francis Ngannou.

Celebrity and Entertainment Partnerships

• Drake: A reported US$100 million/year endorsement sees the rapper livestream his high-stakes roulette sessions on Stake, attracting tens of thousands of viewers.
• Sergio “Kun” Agüero: The Argentine football icon joined as a Stake global ambassador in 2022, engaging fans via promotional events and social media.
• Kick.com: Stake’s founders launched this Twitch alternative in late 2022, signing top streamers like Trainwreckstv, xQc, and Adin Ross to exclusive deals. Kick allows crypto-gambling streams that Twitch banned.

Competitive Positioning

Stake.com is widely regarded as the market leader in crypto-exclusive gambling, reportedly the 7th largest global gambling operator by revenue. Competitors such as Roobet, BC.Game, and others also operate under Curaçao licenses, but few match Stake’s scale or marketing spend. Traditional betting brands may eventually adopt crypto, creating additional competition in regulated markets.

Notable Users and High-Stakes Gambling

Celebrity gamblers have heightened Stake’s profile.

• Drake regularly bets hundreds of thousands to millions of dollars per spin on Stake’s roulette and blackjack.
• Trainwreckstv (Tyler Niknam) claimed to have a lucrative sponsorship, allegedly receiving up to US$360 million total from Stake over 16 months, sparking debate about transparency and responsible gambling.

Regular reports of seven-figure wins and losses, fueled by crypto “whales,” contribute to Stake’s reputation for extremely high-stakes betting.

Controversies and Challenges

• Founder Lawsuit: Christopher Freeman’s lawsuit alleging he was wrongfully excluded and that Stake breaches U.S. gambling laws remains ongoing.
• Twitch Gambling Ban: In late 2022, Twitch banned Stake.com and several other offshore crypto casinos due to consumer protection concerns. Stake then pivoted to supporting the Kick.com streaming platform.
• Security Breach (2023): Stake lost ~US$41 million to hackers linked to North Korea’s Lazarus Group. The company covered user funds from reserves but faced reputational damage.
• Regulatory Scrutiny: Authorities in Australia, the U.S., and elsewhere have tightened measures against offshore gambling. Stake blocks many restricted jurisdictions but critics assert it tacitly allows VPN usage.

Future Outlook

Facing stricter licensing and legal frameworks globally, Stake.com aims to comply with new regulations, pivoting from a largely unregulated crypto casino model to a mixture of licensed local sites (often fiat-only) and crypto offerings elsewhere. The company continues investing in sports sponsorships (e.g., Formula One) and developing Kick.com as a marketing channel, illustrating its ambition to remain a major force in online gambling. Whether it can reconcile its crypto origins with evolving regulatory demands remains a central challenge.