One morning final 12 months, Australia’s youngest billionaire Ed Craven woke as much as the information that considered one of his celeb companions, the rap star Drake, had gained $38mn in Bitcoin playing on his cryptocurrency betting website Stake.com.
“That was a troublesome morning,” recalled Craven. However on the entire, his enterprise has been on a successful streak for the reason that 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 virtually unnoticed to grow to be the world’s seventh largest playing group by revenues, eclipsing established manufacturers similar to DraftKings and 888, in accordance with estimates compiled by consultancy Regulus Companions for the Monetary Occasions.
In 2020 it generated gross gaming revenues, a key trade metric, of simply $105mn. Final 12 months the determine was almost $2.6bn, in accordance with firm accounts seen by the Monetary Occasions.

“There have been so many excessive rollers. I’d be sitting there with the group and considered one of them can be like: This lady in Singapore has simply put her hand down for one million {dollars} towards this man in Russia who’s completed the identical,” mentioned 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 sport RuneScape.
They experimented with playing on this digital world, inviting different gamers to wager digital gold cash, earlier than they had been banned for doing so. Their first on-line betting website 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 mentioned.
Following the instance of crypto playing website SatoshiDice, Craven and Tehrani in 2013 created Primedice, a easy on-line cube sport that allowed gamers to wager in crypto. This labored nicely 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 Occasions that lavish advertising and marketing spending was vital for its development and to beat the “troublesome stigma” of being a platform that mixes crypto and playing.
“It helped reassure prospects that . . . these guys should not going to run off with my $50,” mentioned Craven. These doubts may very well be addressed by creating “[a] model that may very well be trusted which is . . . fairly troublesome to do when you’re up towards some very massive opponents . . . who’re very established”, he added.
“By spending lots on promoting, you create an implied guarantee on your product,” mentioned 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, in accordance with two folks acquainted with the small print.
Craven additionally hosts a two-hour stay stream each week the place he solutions buyer queries immediately. A big portion of the corporate’s 370 workers are targeted on catering for VIP and “tremendous” VIP gamblers, a core a part of the enterprise that is still immediately underneath Craven’s oversight.
He acknowledges that the enterprise has modified lots from its beginnings. “I believe what Stake is as we speak vs what it was when it was created is a really totally different panorama,” he mentioned.
On a number of events in its early days, he employed personal safety safety as a result of he was fearful about his security, in accordance with two former workers. “There was a number of loopy shit that went on,” mentioned one of many former workers.
A former enterprise accomplice from that point, Christopher Freeman, a childhood buddy 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 grow to be chief compliance and regulatory officer of collapsed crypto trade FTX.
A category-action lawsuit filed in a Florida federal court docket accuses Friedberg and different FTX workers 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 workers had been caught utilizing software program to spy on prospects’ playing cards and wager towards them. Friedberg was not accused of any wrongdoing.
Craven mentioned Friedberg labored largely on Primedice however added that “a number 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 seemed like, and he tried to provide us the most effective 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 just a few conversations” with the lawyer.
Friedberg declined to remark.

In contrast to many of the large 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 similar 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 presently 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 mentioned 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,” mentioned Craven.
Freeman’s lawsuit towards Stake.com cites proof of the corporate encouraging gamblers within the US, the place entry to the positioning is blocked to adjust to strict playing guidelines, to make use of digital personal networks to get across the ban.
Craven mentioned: “It will clearly be naive to imagine that we’ve completely zero prospects in america, however I can safely say that we do not need 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 website BetDex, mentioned: “Within the gaming house it’s grow to be a confirmed mannequin, you begin within the gray market and also you develop to an enormous measurement, and then you definitely discover a path to changing into extra regulated.”
Ingo Fiedler, co-founder of Blockchain Analysis Lab, mentioned a lot of Stake.com’s success could also be right down to crypto and playing being pure bedfellows, each of them attracting prospects prepared 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 mentioned. The subdued crypto market after the spectacular crash of final 12 months may additionally push extra merchants in the direction of playing platforms, he added.
Eccles attributes Stake.com’s success to its aggressive advertising and marketing and being the “first actually world, crypto-only” playing website. Drake, he added, “is the essence of the model: a younger, male sports activities fanatic with a really excessive tolerance for danger”.