Stake’s expansion plans are marred by a legal showdown.
An Australian share trading platform of the same name is threatening to take the startup, founded by billionaire Ed Craven and backed by hip-hop star Drake, to court.
Sydney’s Stake vs. Drake’s Stake
Stake, the one backed by Drake, was originally prohibited from offering its gaming services in Australia unless it obtained a casino license. Once the company pursued a license and registered a number of trademarks, it drew scrutiny from a Sydney-based share trading platform of the same name.
The trading platform is now suing the gambling startup to prevent the company from using the Stake brand.
According to the Australian Associated Press, the Stake trading platform filed court documents explaining that it had already established a brand and goodwill through the usage of the name across Australia.
Stake, the one founded by Craven and his American business partner Bijan Tehrani in 2017, is based in Curacao, a country in the Caribbean. It describes itself as a “leading online crypto casino” where users can wager on sporting events and play online games like slots, blackjack, and roulette using Bitcoin, Ethereum, Dogecoin, and other cryptocurrencies.
Craven is reportedly based in Melbourne.
Stake’s Formula One sponsorship and Drake Partnership
A sponsorship agreement between the gaming company and the Alfa Romeo Formula One team was announced in January of this year, and as a result, the Melbourne Grand Prix included the company’s emblem.
The gaming firm revealed in January of this year that it had entered into a sponsorship agreement with the Alfa Romeo Formula One team, which resulted in the display of its emblem at the Melbourne Grand Prix.
Canadian rapper Drake, whose real name is Aubrey “Drake” Graham, joined Craven’s Stake in April 2022. He uses the Stake website to live-stream with gamers and posts Instagram stories while playing on the platform.
Company records show about 6% of all Bitcoin transactions globally were made using its website in June, when 840 million casino bets were placed on its website in June.
Source: https://crypto.news/drake-backed-gambling-startup-stake-faces-legal-hurdles-in-australia/