One morning final 12 months, Australia’s youngest billionaire Ed Craven woke as much as the information that one in every of his celeb companions, the rap star Drake, had received $38mn in Bitcoin playing on his cryptocurrency betting web site Stake.com.
“That was a tricky morning,” recalled Craven. However on the entire, his enterprise has been on a profitable streak because the begin of the pandemic due to rich gamblers from throughout the globe drawn to the anonymity of betting in crypto.
Stake.com, which was launched in 2017 by Craven and his US co-founder Bijan Tehrani, has grown nearly unnoticed to change into the world’s seventh largest playing group by revenues, eclipsing established manufacturers equivalent to DraftKings and 888, based on estimates compiled by consultancy Regulus Companions for the Monetary Instances.
In 2020 it generated gross gaming revenues, a key trade metric, of simply $105mn. Final 12 months the determine was practically $2.6bn, based on firm accounts seen by the Monetary Instances.

“There have been so many excessive rollers. I’d be sitting there with the group and one in every of them can be like: This lady in Singapore has simply put her hand down for one million {dollars} in opposition to this man in Russia who’s finished the identical,” stated a former worker who labored on the firm throughout its early days.
Craven, who’s 27, met Tehrani, 28, greater than a decade in the past whereas enjoying on-line fantasy recreation RuneScape.
They experimented with playing on this digital world, inviting different gamers to guess digital gold cash, earlier than they have been banned for doing so. Their first on-line betting web site got here into being in 2013. The windfall from early crypto investing, when Bitcoin was priced at beneath $20, has bankrolled their enterprise ventures ever since, the pair stated.
Following the instance of crypto playing web site SatoshiDice, Craven and Tehrani in 2013 created Primedice, a easy on-line cube recreation that allowed gamers to guess in crypto. This labored properly and in 2017 they launched a fully-fledged playing platform providing on line casino video games and sports activities betting underneath the identify Stake.com.
Craven informed the Monetary Instances that lavish advertising spending was essential for its progress and to beat the “tough stigma” of being a platform that mixes crypto and playing.
“It helped reassure prospects that . . . these guys aren’t going to run off with my $50,” stated Craven. These doubts could possibly be addressed by creating “[a] model that could possibly be trusted which is . . . fairly tough to do if you find yourself up in opposition to some very massive rivals . . . who’re very established”, he added.
“By spending lots on promoting, you create an implied guarantee on your product,” stated Khalil Philander, an assistant professor at Washington State College who researches crypto-gambling.
Excessive-profile sponsorship offers with the likes of Premier League membership Everton and Alfa Romeo’s F1 group, plus celeb endorsements have additionally helped it pull forward of larger rivals. Drake was a big-spending early adopter and final 12 months signed a $100mn a 12 months endorsement cope with the corporate, based on two folks acquainted with the small print.
Craven additionally hosts a two-hour stay stream each week the place he solutions buyer queries straight. A big portion of the corporate’s 370 employees are centered on catering for VIP and “tremendous” VIP gamblers, a core a part of the enterprise that continues to be straight underneath Craven’s oversight.
He acknowledges that the enterprise has modified lots from its beginnings. “I believe what Stake is immediately vs what it was when it was created is a really totally different panorama,” he stated.
On a number of events in its early days, he employed personal safety safety as a result of he was frightened about his security, based on two former staff. “There was a whole lot of loopy shit that went on,” stated one of many former staff.
A former enterprise companion from that point, Christopher Freeman, a childhood good friend of Tehrani, is suing him and Craven for $400mn, alleging the pair stole his concepts and bullied him out of the enterprise. Craven and Tehrani have filed a movement to dismiss the case.
Within the run-up to the launch of Stake.com, the founders additionally took recommendation from Canadian lawyer Dan Friedberg, who would later change into chief compliance and regulatory officer of collapsed crypto trade FTX.
A category-action lawsuit filed in a Florida federal courtroom accuses Friedberg and different FTX staff of serving to founder Sam Bankman-Fried cowl up $8bn in buyer losses. Friedberg is now co-operating with US prosecutors however has not been charged over the FTX scandal.
Earlier than his involvement with Stake.com, Friedberg additionally suggested executives at Final Wager, which was fined by Canadian regulators in 2008 after employees have been caught utilizing software program to spy on prospects’ playing cards and guess in opposition to them. Friedberg was not accused of any wrongdoing.
Craven stated Friedberg labored largely on Primedice however added that “a whole lot of [the work to set up Stake.com] was ran previous” Friedberg, who “took on the place of making an attempt to analyse . . . what the authorized panorama appeared like, and he tried to present us the perfect recommendation potential on what’s authorized and what was not”.
A consultant of Tehrani later contacted the FT to say Friedberg had solely given the 2 founders “passing recommendation” on Primedice and so they had “solely ever had a number of conversations” with the lawyer.
Friedberg declined to remark.

In contrast to a lot of the huge playing teams, which don’t settle for crypto, lots of Stake.com’s 600,000 common customers and 6mn registered accounts are situated in “gray” markets equivalent to Brazil, Japan and different nations in south-east Asia the place the principles about on-line playing on international websites are undefined.
It has a pending non-crypto playing licence software in Australia and one other nearing approval within the Canadian state of Ontario. It additionally has small non-crypto on-line playing operations within the US and UK and just lately acquired conventional playing licences in Mexico and Paraguay.
Stake.com has its head workplace in Melbourne and is at present registered as a 50/50 partnership between EasyGo Options, an entity owned by Craven, and Tehrani. It has not but filed full accounts however Craven stated the corporate was “working extraordinarily intently” with the Australian Taxation Workplace to resolve this.
Regardless of being headquartered in Australia, Stake.com is licensed in Curaçao, a Caribbean island that pulls operators with its light-touch playing regulation. “They go about issues in a unique method,” stated Craven.
Freeman’s lawsuit in opposition to Stake.com cites proof of the corporate encouraging gamblers within the US, the place entry to the location is blocked to adjust to strict playing guidelines, to make use of digital personal networks to get across the ban.
Craven stated: “It will clearly be naive to imagine that we’ve got completely zero prospects in america, however I can safely say that we would not have a presence there of any significance [and] we actively work to take away any prospects from america.”
Nigel Eccles, founding father of playing firm FanDuel, who has launched his personal crypto betting web site BetDex, stated: “Within the gaming area it’s change into a confirmed mannequin, you begin within the gray market and also you develop to an enormous measurement, and you then discover a path to turning into extra regulated.”
Ingo Fiedler, co-founder of Blockchain Analysis Lab, stated a lot of Stake.com’s success could also be all the way down to crypto and playing being pure bedfellows, each of them attracting prospects keen to take dangers.
“The crypto day dealer who makes use of crypto for hypothesis . . . is a cluster that resembles fairly remarkably the standard gambler,” he stated. The subdued crypto market after the spectacular crash of final 12 months may also push extra merchants in direction of playing platforms, he added.
Eccles attributes Stake.com’s success to its aggressive advertising and being the “first actually international, crypto-only” playing web site. Drake, he added, “is the essence of the model: a younger, male sports activities fanatic with a really excessive tolerance for danger”.