Crypto gaming’s biggest giant deepens its FIAT operations, as it is no surprise to industry analysts that an eventual listing or liquidity event seems on its radar…

Stake’s stated ambition is to be “the world’s biggest casino and entertainment brand” but its fifth move into regulated markets in just over a year reveals a company in the midst of a profound transformation that is likely to lead to a listing or sale, according to analysts.

Stake parent company Easygo acquired Danish operator VinderCasino last month, following similar moves into Colombia, Peru, Brazil, and Italy. It also has licences in Ontario, Mexico, Paraguay and the UK. Chief Strategy Officer Brais Pena recently told SBC Leaders magazine that there will be more to come in 2025.

Regulus Partners analyst Paul Leyland comments: “Stake has got so big that it almost has to go regulated. Once you want to capitalise, you can’t list Stake or sell it without a critical mass of licences.”

Doin’ it right

The company reported revenue of $2.6bn in 2023, according to the Financial Times, and Leyland estimates it must be approaching or eclipsing $3bn by now, although he points out that the volatility of Bitcoin means it is difficult to estimate the effect on revenue.

While Leyland speculates that the founders – Ed Craven and Bijan Tehrani – must have made more than enough money, Christoffer Andersson, COO of competitor crypto operator 500 Casino, believes another reason for entering regulated markets is that the Easygo team reckon they can do it better than regular FIAT operators.

“A lot of crypto casinos have been very product-focused, making sure that they are constantly increasing their UX/UI and loyalty offering – since the competition is completely different within the crypto bubble and between regular FIAT casinos,” says Andersson.

“One slightly bad experience will usually make a player move from one crypto casino to a different one, while it will take a lot for a FIAT player to change to a different casino,” he added.

The same argument has been made by other crypto operators such as BetHog’s CEO Nigel Eccles, the co-founder of FanDuel, who back crypto utilities as the next paradigm shift for the sector. Andersson argues that compliance checks such as source of funds and KYC make the FIAT player stay put, but also that the regular FIAT customer is “not as technically educated as the common crypto player”.

“I think we come from a ‘higher division’ product-wise,” says Andersson. “And can definitely stir up things on the regular markets.”

Paul Leyland: Regulus Partners

Goin’ legit

The road from grey to regulated markets and/or listing is a well-travelled route that has been taken in various ways by the likes of 888 (now Evoke), GVC/Entain, Bet365 and Stars Group; but Stake is the first crypto operator to seriously attempt the transition. Gaming&Co contacted the group about these topics but had not received a reply at the time of going to press.

“One of the problems looking at pre-UIGEA operators and with dot.com operators is that they exist in a bubble of entrepreneurial growth and, to a large extent, don’t have to worry about laws and regulation. They don’t realise how debilitating that step can be,” says Leyland.

“The good thing about attempting to do it,” he adds, “is that if failure is the status quo, then you might as well roll the dice.”

“A lot of FIAT casinos tend to be quite relaxed with their product, and don’t really feel the need to work on their site/player experience so much – they believe they will still have ‘plenty of players’,” concludes Andersson.

“So once crypto casinos are taking on the FIAT/regulated markets they will have the upper hand on the product side and even within player experience.”

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