A cryptocurrency gambling company co-founded by Australian billionaire Ed Craven and endorsed by Canadian music artist Drake has encountered a legal obstacle in its attempt to establish itself in the Australian market. The ambitious plans of Stake to expand nationwide are now facing a challenge from a Sydney-based share trading platform with the same name, as reported by the Australian Associated Press.
The share trading platform initiated a lawsuit in the Federal Court last week, aiming to prevent the crypto casino from utilizing the Stake brand within Australia. It is worth noting that Stake, the casino, is currently prohibited from offering its services in the Australian market.
The legal action is grounded in the argument that the share trading platform has already established a reputation associated with the Stake name within the country. The use of the same name by the crypto gambling firm is claimed to create confusion among consumers, implying a connection between the two entities that do not exist.
Legal proceedings and celebrity crypto endorsements
The matter has now been presented to the Federal Court, where the share trading platform is seeking orders to prevent the gaming company from promoting itself using the Stake name in Australia. The shared platform reportedly demanded that the casino cease the contested conduct, but the casino has allegedly refused or neglected to comply.
In addition to the ongoing legal challenges, the founders of the casino faced a lawsuit in February from a former business associate who claimed $400 million in damages, accusing them of betrayal.
Stake positions itself as a prominent “crypto casino,” offering the ability to place bets in cryptocurrencies such as Bitcoin (BTC), Ether (ETH), and Dogecoin (DOGE) on various sports events and online games. The company is currently registered in Curacao.
The casino, established by Melbourne-based Ed Craven and his American partner Bijan Tehrani, has swiftly risen to prominence in the online gambling sector since its inception in 2017. Stake has developed into the seventh-largest global gambling group, reporting a gross gaming revenue of almost $2.6 billion in the previous year.
Throughout its growth, Stake has managed to attract both high-rollers and high-profile endorsements, including a substantial $100 million-per-year deal with renowned rapper Drake.
Source: https://www.cryptopolitan.com/drake-backed-crypto-casino-hit-with-lawsuit/