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Crypto betting site Stake.com is facing a lawsuit over using its brand name in Australia. Their recent attempts to enter the Australian market caught the attention of a namesake shares trading company based in the country. According to casinoshub.com, Australia’s leading online casino guide, the Sydney-based trading platform filed a Federal Court lawsuit to restrict the betting company from using the Stake brand. In the lawsuit, the Australian firm states that it has built a reputation under its name and claims it will be severely damaged if Stake.com starts promoting its activities under the same label.
The History of the Two Companies
Although fairly new, both companies have made significant buzz in their respective fields over the past few years.
Stake.com
Founded in 2017 by Ed Craven and his American partner Bijan Tehrani, Stake.com has grown into one of the leading online betting sites in the world. Licensed in Curaçao, the company has been trying to obtain an operating license in Australia for a while now. Currently ranked in the world’s top 15 most visited betting sites, Stake is looking for ways to expand on its boom.
Primarily advertised as a sports betting platform, it also features many casino games, such as pokies, live casino table games and shows, and Stake original casino games. Players are attracted by the site’s modern and intuitive design, lucrative promotions, and secure crypto transactions. Punters can use Bitcoin, Ethereum, Tron, and other cryptocurrencies to play on the platform, as well as flat currencies from bank accounts worldwide.
Stakeshop Pty Ltd,
On the other side of the courtroom is Stakeshop Pty Ltd, operating and trading under its brand, Stake. It is a Sydney-based online brokerage platform offering financial services such as share trading for its users in Australia, New Zealand, Brazil, and the United Kingdom. The company was established in 2017, becoming one of Australia’s top online brokers. With an active app user count of around 450,000, it made a serious impact on the financial market on the continent.
What Is the Lawsuit About?
According to Stakeshop Pty Ltd’s statement in the lawsuit, Stake.com has been illegally promoting itself on the Australian market. They insist that using the Stake name and brand in Australia violates the copyright laws in the country, as the share trading platform has already built up a sizable reputation under it.
Additionally, they state that the common label confuses customers, suggesting the two companies are connected. The trading company is seeking authorities to ban the betting company from promoting itself and its services using the Stake name.
The lawsuit, filed this August, is the second legal action Stake faces in just a few months. It follows after Christopher Freeman, an ex-partner of Craven and Tehrani, accused the two of stealing his idea and using unlawful means to shut him out of the business. However, the claim was dismissed in June this year due to a lack of jurisdiction.
Stake’s Ambitions and Future
Stake’s efforts to penetrate the Australian market are an understandable response to the growing gaming industry. The Australian online gaming market is anticipated to generate $14.86 billion in revenue in 2023 and $20.06 billion by 2027. Australians offer a valuable possibility for growth on a platform like Stake, and it doesn’t appear they will give up quickly.
The company has signed a ton of pricey sponsorship deals in an effort to strengthen its brand, including endorsements from celebrities like Israel Adesanya of the UFC, musician Aubrey Drake Graham, and footballer Sergio Aguero. Stake also became the Alfa Romeo F1 Team’s title sponsor in January of this year, cementing its reputation on the major sports scene for years to come. Nevertheless, given that the Melbourne Grand Prix is currently scheduled on the Formula 1 calendar, a future prohibition on using their brand in Australia could pose a significant challenge to this agreement.
Can Aussie Punters Still Bet On the Stake Website?
Luckily for Aussie punters, they can still place wagers on Stake’s website. While the Australian government forbids the betting site from promoting its activities in the country, residents can still make an account and enjoy playing on the platform.
Final Thoughts
Stake’s lawsuit was filed at the beginning of August, and we are yet to see its outcome. The Federal Court of Australia will surely take several months to review the documents presented by the trading firm and decide whether legal hearings will commence.
A possibility that this legal battle will result in a ban on the Stake.com name in Australia does exist, and it can lead to many outcomes. The brand might be forced to operate in the country under a different name or forgo some of its sponsorship deals, but we can only speculate at this point. For now, the website is fully operational in the country and worldwide.
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