Stake

Stake.com is a cryptocurrency-based online casino and sports betting platform launched in 2017. It enables users to deposit, wager, and withdraw exclusively in digital currencies on its main global site, positioning itself at the forefront of the crypto gambling industry. Although banned in major markets such as the United States, the United Kingdom (before 2021), and much of Europe, Stake.com has grown to become one of the largest offshore crypto casinos. In 2022, it reportedly generated about US$2.6 billion in gross gaming revenue—making it one of the world’s largest gambling companies by revenue.

Stake.com’s rapid ascent has been fueled by high-profile sponsorships (including Premier League football clubs, an F1 team, and UFC champions) and celebrity partnerships (notably with the rapper Drake). Its business model merges two controversial areas—online gambling and cryptocurrencies—prompting scrutiny by regulators and debates around consumer protection.

Overview

Stake.com operates globally under a Curaçao eGaming license, providing online casino games and sports wagers in various cryptocurrencies (including Bitcoin, Ethereum, Dogecoin, and others). The platform’s offerings include thousands of slot and table games, a comprehensive sportsbook, and “Stake Originals” featuring provably fair mechanics. Despite geo-blocking several regions with strict regulatory regimes, the site has attracted a large user base in countries where online gambling laws are more permissive or in gray areas. As of 2022–2023, Stake.com continues to expand into locally regulated markets (e.g., the United Kingdom) with fiat-only variants of its platform.

History and Background

Founding

Stake.com was founded by Edward "Ed" Craven (an Australian) and Bijan Tehrani (an American) in 2017. The two met as teenagers while running an in-game gambling operation in the online game RuneScape. After RuneScape developers banned staking duels in 2011, they pivoted to real-money Bitcoin gambling via a dice site called Primedice in 2013. Profits from Primedice helped them launch a development company (Easygo) in Melbourne, Australia, which built the more ambitious crypto casino Stake.com.

Growth Milestones

After its 2017 launch, Stake.com rapidly expanded its product range beyond dice-style games to include online slots, table games, and a full sportsbook by 2019. The platform attracted users in Latin America, Canada, parts of Asia, and Eastern Europe—regions with more permissive online gambling frameworks. Partnerships with popular streamers on Twitch helped accelerate growth, especially during the COVID-19 pandemic in 2020.

Timeline of Notable Events

• 2017: Stake.com goes live, focusing on provably fair in-house crypto games.
• 2019: Expands to thousands of third-party slots, table games, and introduces a sportsbook.
• 2020: Surges in revenue amid pandemic lockdowns and sponsorship deals with prominent Twitch gambling streamers.
• 2021: Acquires a UK Gambling Commission license (through a local partner) and launches Stake.uk.com. Sponsors Watford F.C. in the Premier League.
• 2022: Lands major celebrity partnership with Drake, invests heavily in marketing, surpasses US$2 billion in annual revenue. Twitch bans crypto slots gambling (including Stake) from the platform; Stake’s founders subsequently fund the creation of Kick.com as an alternative.
• 2023: Becomes title sponsor of Alfa Romeo’s Formula One team ("Alfa Romeo F1 Team Stake"), signs multi-year sponsorship of Everton F.C., and suffers a US$41 million hack attributed to the Lazarus Group.
• 2024 and beyond: Focuses on regulatory compliance, adoption of KYC, and expansion into additional licensed markets. The Alfa Romeo team is rebranded “Stake F1 Team” ahead of a planned transition to Audi in 2026.

Ownership and Key People

Stake.com is privately held by its two co-founders, Craven and Tehrani, who each own 50%. Both rose to become young billionaires, with net worth estimates exceeding US$1.3 billion each by 2023. The platform’s CEO is Mladen Vuckovic, who oversees day-to-day operations.

Stake employs a distributed structure: the main site is licensed in Curaçao, while Australia-based Easygo handles development, and regional teams manage local versions in the UK, Portugal, and elsewhere.

Business Model and Operations

Stake.com functions similarly to a traditional online casino and sportsbook but uses cryptocurrency for all deposits and withdrawals on its primary global site. It derives revenue from the house edge on casino games and the margins on sports bets. Key aspects include:

• Cryptocurrency-Only (Global Site): Accepts Bitcoin, Ethereum, Litecoin, XRP, and others. In regulated markets like the UK, separate Stake sites use fiat and adhere to local rules.
• Casino and Sportsbook Offering: Provides thousands of slot and table games, live-dealer options, provably fair “Stake Originals” (e.g., dice, crash), and a comprehensive sportsbook covering global sports and esports.
• House Edge and Payouts: Standard edges on games (e.g., ~1–4%) generate sustained profit. Some high-rollers place six- and seven-figure bets, which Stake highlights in public chat feeds and promotional materials.
• Affiliate Program and VIP System: Attracts users via an affiliate commission model, giving referrers a percentage of players’ net losses. Offers a tiered VIP loyalty program with rakeback, bonuses, and dedicated hosts for large-volume bettors.
• Live-Stream Marketing: Gained fame by sponsoring high-stakes Twitch/YouTube streamers, who showcased million-dollar slot spins and table bets. Following Twitch’s 2022 ban on crypto casinos, Stake’s founders helped create Kick.com to continue streaming partnerships.

Regulatory and Legal Landscape

Online gambling laws vary significantly worldwide, and Stake’s approach has been to operate under a Curaçao eGaming license while selectively entering regulated markets:

Licensing and Jurisdictional Restrictions

• Operates under a Curaçao license, but this is not recognized in many Western jurisdictions. Countries such as the US, Australia, and most of Europe are officially geo-blocked, though players have used VPNs.
• Began launching locally licensed sites in 2021 (e.g., Stake.uk.com under UKGC regulation, fiat-only). Plans to expand similarly in Ontario (Canada), Portugal, Italy, and more.
• In the United States, Stake offers a “social casino” sweepstakes model at Stake.us, avoiding direct gambling regulation by using virtual tokens redeemable for prizes.

Compliance and KYC

Originally allowing anonymous play, Stake now enforces stronger KYC for larger transactions and regulated markets. It provides responsible gambling tools (e.g., deposit limits, self-exclusion), especially in jurisdictions requiring it by law.

Legal Challenges

• Christopher Freeman Lawsuit: A former associate sued Stake’s founders for US$400 million, alleging he was cut out of the business and claiming the company facilitated illegal US gambling via VPNs. Stake denies these allegations, calling the suit meritless.
• Twitch Ban: In 2022, Twitch prohibited crypto “slots” streaming from unlicensed casinos, explicitly naming Stake. The ban followed concerns about exposing minors and unregulated gambling. Stake subsequently promoted gambling streams on the new Kick.com platform.
• Regulator Scrutiny: Various governments (e.g., Australia, parts of Europe) have blacklisted or blocked access to offshore gambling sites, though Stake often self-blocks those regions to avoid conflict.

Sponsorships and Partnerships

Stake.com is known for a prominent sports and celebrity sponsorship portfolio, driven by a substantial marketing budget.

Sports Team Sponsorships

• Watford F.C. (2021–2022): Served as principal shirt sponsor during Watford’s Premier League campaign; featured the Dogecoin logo on sleeves.
• Everton F.C. (2022–present): Replaced the Watford deal with Everton in a club-record sponsorship (worth an estimated £10 million per season).
• UFC: Official betting partner in select markets, plus individual fighter sponsorships (Israel Adesanya, Francis Ngannou).
• Alfa Romeo F1 Team Stake (2023–present): Title sponsor of the Formula One team. The partnership is reportedly valued at around US$100 million over three years. Rebranded as “Stake F1 Team” in 2024.

Celebrity and Entertainment Partnerships

• Drake: Signed a US$100 million-per-year deal to stream live roulette sessions and promote the brand under “Stake x Drake.” He has publicly placed multi-million-dollar bets on the platform.
• Sergio Agüero: The former Manchester City striker and Argentine international became a global brand ambassador in 2022.
• Kick.com: Although not a sponsorship per se, Stake’s founders created and bankroll the Kick streaming platform, signing exclusive deals with major streamers (e.g., xQc, Adin Ross). Kick allows crypto casino streams, effectively supplanting Twitch for Stake’s promotional campaigns.

Competitive Positioning

Stake.com is widely regarded as the largest crypto-focused casino, reporting revenue of US$2.6 billion in 2022, surpassing some established traditional bookmakers. Its main competitors in the crypto space include Roobet, BC.Game, and several others. Stake’s success is attributed to:

• Early adoption of crypto-only wagering and provably fair games.
• Aggressive marketing via celebrity deals and high affiliate commissions.
• A strong community and VIP program emphasizing large-volume betting.

As the company expands into regulated markets, it faces competition from incumbent operators like bet365, FanDuel, and other major sportsbooks that may eventually offer cryptocurrency options. Stake’s ability to adapt to stricter regulation (and potential new taxes/licensing costs) will influence its market share relative to both crypto-native rivals and traditional gambling giants.

Notable Users and High-Stakes Gambling

Stake.com has attracted various high-profile gamblers and streamers:

• Drake: The Canadian rapper regularly live-streams his high-stakes roulette sessions, sometimes wagering hundreds of thousands of dollars per spin.
• Trainwreckstv (Tyler Niknam): Claimed he earned US$360 million over 16 months from a Stake sponsorship deal. He often placed million-dollar slot bets funded by the casino.
• xQc (Felix Lengyel): One of the largest Twitch streamers; admitted to losing millions on Stake before joining Kick. Although not always officially sponsored, his presence drew significant attention to Stake’s platform.

Reports of record wins and losses abound, reinforcing Stake’s image as a platform for big spenders. The platform publicly displays large bets and jackpot hits in real time, creating a social-media-friendly atmosphere around high-stakes gambling.

Controversies and Challenges

• Founder Lawsuit: Christopher Freeman’s US$400 million lawsuit accuses Craven and Tehrani of excluding him from Stake’s profits, alleging the platform facilitates illegal gambling by encouraging VPN use. Stake calls the suit meritless.
• Twitch Gambling Ban: Stake’s prominence in live-stream gambling drew criticism for allegedly targeting minors and vulnerable viewers. Twitch officially banned crypto “slots” streams in 2022, citing consumer protection concerns.
• Cybersecurity Breach (2023): Hackers stole approximately US$41 million from Stake’s hot wallets. The FBI later attributed the breach to the North Korean–linked Lazarus Group. Stake covered user balances, but the incident highlighted security risks in crypto gambling.
• Regulatory Scrutiny: Stake’s affiliation with high-stakes streamers, marketing in global sports, and acceptance of crypto have drawn the attention of regulators concerned about problem gambling, money laundering, and unlicensed access. Some critics argue that VIP incentives and easy crypto deposits can exacerbate gambling addiction.

Future Outlook

Stake.com’s trajectory depends on global regulatory shifts, its continued investments in compliance, and the evolving crypto market. The company has signaled a strategic pivot toward fully licensed operations, adapting its business model (including KYC procedures and fiat betting in certain jurisdictions).

• **Regulatory Expansion**: Likely to seek licenses in more major markets (e.g., parts of Europe, Latin America, and possibly the US if federal or state laws become favorable).
• **Kick.com Integration**: Its founders’ backing of the streaming platform Kick could sustain gambling-focused live streams, mitigating the impact of Twitch’s ban.
• **Mainstream Acceptance**: While early growth stemmed from an unregulated approach, Stake increasingly aims to establish itself as a legitimate, long-term operator with robust compliance and social responsibility programs.

The company’s prominence, marketing reach, and substantial revenue have made it a central figure in discussions about the future of crypto gambling, balancing innovation and regulatory oversight.