Overview
This transcript details the rise of Stake, a cryptocurrency-based online casino founded by Ed Craraven and Bjon Trani. It chronicles their origins, business maneuvers, marketing strategies, controversies, and the company's rapid growth to a multi-billion-dollar enterprise.
Founders' Early History and First Venture
- Ed Craraven and Bjon Trani met as teenagers playing Runescape, bonding over in-game gambling ("staking").
- They created an informal sportsbook within Runescape but were banned from the game for this activity.
- Maintaining their friendship, they launched their first casino venture, Prime Dice, in 2013, offering a simple crypto-based dice game.
- Prime Dice saw immediate financial success, with over a million dollars in bets on launch day.
Establishment of Stake and Business Structure
- Using profits from Prime Dice, Ed and Bjon moved to Melbourne and established EasyGo, a casino game development company.
- In 2017, they launched Stake, offering a full suite of crypto casino games.
- Due to strict Australian laws banning online casinos, they incorporated Medium Rare NV in Curaçao to capitalize on liberal gambling regulations and favorable tax conditions.
- They navigated legal loopholes by not providing services or advertising to Australians directly.
Market Growth and Crypto Adoption
- The mainstream adoption of cryptocurrency, especially Bitcoin, drastically expanded Stake’s potential user base.
- Stake’s revenue rapidly increased, reaching tens of millions by 2019 as more people acquired crypto wallets.
Marketing Strategies and Global Expansion
- The COVID-19 pandemic and Twitch’s user surge led Ed and Bjon to pay prominent streamers and influencers to use Stake live, generating massive exposure.
- Partnerships with notable influencers like Train Rex TV, XQC, Aiden Ross, and Drake, who reportedly received significant sums to gamble publicly.
Controversies and Regulatory Backlash
- Ethical concerns arose around young, impressionable viewers being exposed to gambling through influencer partnerships.
- Issues included lack of disclosure about streamers playing with Stake’s money and inadequate age verification on platforms like Twitch.
- In 2022, Twitch banned streaming of crypto casinos, disrupting Stake's main marketing channel.
Adaptation and Continued Growth
- Stake pivoted to sponsoring sports teams, events, athletes, and viral social media accounts to maintain brand visibility.
- Continued influencer and sponsorship campaigns led to record revenues, reaching $4.7 billion in 2024 and a company valuation of $23.5 billion.
Founders' Personal Successes
- Ed invested heavily in luxury real estate, vehicles, and family businesses.
- Bjon purchased an expensive Manhattan townhouse with historical significance.
- Stake is now the seventh largest gambling group and the largest crypto casino globally, operating in over 100 countries.