Stake’s co-founders are secretly building an equity stake in Australian-based gaming operator PointsBet. [Image: Shutterstock.com]
Building your inventory
Co-founders and billionaires Ed Craven and Bijan Tehrani have reportedly secretly built a stake in PointsBet. The Australian Financial Report (AFR) has announced that the pair acquired shares through its Easygo Gaming business last month.
The duo now controls about 4.2% of PointsBet shares
AFR cited unnamed betting industry sources as saying the duo now controls about 4.2% of PointsBet shares. Craven and Tehrani have mentioned several times that they are trying to break into Australia’s legal gambling sector to diversify their assets.
Building on the success of Stake
Stake has become increasingly popular since its launch in 2017. The company has relationships with many well-known live streamers as well as celebrities like Drake. The brand also works with sports organizations and teams, including Everton FC, the UFC and the Alfa Romeo Formula 1 team. Its operations are based in Melbourne and it only has a license in Curaçao.
Cryptocurrency gambling is not allowed in the country
The stake is currently not available to Australians as cryptocurrency gambling is not permitted in the country. The operator plans to apply for a license with the Northern Territory Racing Commission in the near future, but it is unclear whether this would be a Fiat-only offering.
The company has also been eyeing other acquisitions recently. Last month the company acquired Betfair Colombia, while rumors began circulating over the summer that the company was on the verge of a major takeover in the US.
The target company
PointsBet tried to infiltrate the U.S. gaming market for a while before selling those operations to Fanatics for $225 million in October. The effort to gain a foothold in the US market was too high and the company is now focusing on the Australian and Canadian online markets.
PointsBet CEO Sam Swanell told its annual meeting last month that the company currently controls about 5% of the online market in Australia. Swanell said the company is on track to be profitable by the next fiscal year.
