Stake

Key Points

• Nature of Business: Stake is an online cryptocurrency casino and betting platform based in Australia, offering a variety of gambling services including casino games, sports betting, and live dealer options.
• Major Cyber Incident: In September 2023, Stake suffered a significant cyberattack, resulting in the theft of approximately $41 million in cryptocurrency, attributed to the Lazarus Group, a DPRK-affiliated cybercrime syndicate.
• Legal Challenges: Stake US faces multiple lawsuits alleging it operates an illegal gambling site, with accusations of misleading marketing practices targeting vulnerable audiences.
• Regulatory Concerns: Operating in a regulatory gray area, Stake’s use of cryptocurrency and international operations raises questions about compliance with gambling laws in various jurisdictions.
• Customer Feedback: Mixed reviews highlight ease of use and attractive bonuses but raise concerns over transparency, payout reliability, and customer support responsiveness.
• Reputational Risks: Allegations of rigging games and unethical marketing practices have damaged Stake’s reputation, amplified by social media and influencer controversies.
• Associations: Stake has partnered with high-profile figures like Drake and sports organizations, but these ties have drawn scrutiny for promoting gambling to young audiences.

Overview

Stake is an Australian-based online cryptocurrency casino and sports betting platform that has gained prominence in the digital gambling industry. Launched in 2017, it operates under Medium Rare N.V., a company registered in Curaçao, a jurisdiction known for its lenient gambling regulations. Stake offers a wide range of services, including casino games (slots, poker, blackjack), sports betting, and live dealer experiences, all facilitated through cryptocurrency transactions, primarily Bitcoin, Ethereum, and other digital currencies. The platform markets itself as a modern, user-friendly gambling hub, leveraging blockchain technology for transparency and fast transactions. It has positioned itself as a leader in the crypto-gambling niche, appealing to a global audience with its sleek interface and aggressive marketing campaigns, often featuring celebrity endorsements and influencer partnerships.

Stake’s business model capitalizes on the growing popularity of cryptocurrency, offering users anonymity and flexibility in transactions. The platform is accessible in multiple countries, though its operations in the United States have drawn particular attention due to legal challenges. Stake’s branding emphasizes a glamorous, high-stakes gambling experience, bolstered by sponsorships with prominent figures like Canadian rapper Drake and sports entities such as the Alfa Romeo F1 team and Everton Football Club. Despite its popularity, Stake’s operations have been marred by significant cybersecurity breaches, allegations of unethical practices, and legal disputes, raising questions about its reliability and regulatory compliance.

Allegations and Concerns

Stake has faced several serious allegations and concerns that have cast a shadow over its operations:

• Cyberattack and Financial Loss: In September 2023, Stake was compromised in a high-profile cyberattack, resulting in the theft of $41 million in cryptocurrency across Ethereum, Binance Smart Chain, and Polygon networks. The FBI attributed this heist to the Lazarus Group, a North Korean cybercrime syndicate known for targeting cryptocurrency platforms. The breach highlighted vulnerabilities in Stake’s security infrastructure and raised concerns about the safety of user funds.
• Illegal Gambling Allegations: In April 2025, Stake US faced multiple lawsuits accusing the platform of operating an illegal gambling site. Legal filings claim that Stake uses “slick ads, influencer videos, and flashy visuals” to present its games as “safe, fun, and harmless,” potentially misleading users, particularly younger audiences. These lawsuits argue that Stake’s operations violate U.S. gambling regulations, especially in states where online gambling is heavily restricted.
• Game Rigging Claims: Social media posts on X have accused Stake of rigging games to favor the house, with one user claiming the platform “accidentally revealed on video that they cheat.” While these claims lack definitive evidence, they have fueled public distrust and speculation about the fairness of Stake’s gaming algorithms.
• Unethical Marketing Practices: Critics have raised concerns about Stake’s aggressive marketing, particularly its use of influencers and celebrities to target young and vulnerable audiences. Posts on X have highlighted how Stake’s advertisements may violate FTC guidelines by promoting gambling without clear disclaimers or regulations, potentially exploiting impressionable users.
• Regulatory Ambiguity: Operating out of Curaçao, Stake benefits from loose regulatory oversight, which allows it to bypass stricter gambling laws in other jurisdictions. This has led to accusations that the platform operates in a legal gray area, potentially exposing users to risks associated with unregulated gambling.

Customer Feedback

Customer feedback on Stake is polarized, reflecting both its appeal and its shortcomings:

• Positive Feedback: Many users praise Stake for its user-friendly interface, diverse game selection, and attractive bonuses. A review on Trustpilot noted, “Stake’s crypto integration makes deposits and withdrawals seamless, and the VIP program is generous for loyal players.” The platform’s mobile accessibility and variety of betting options, from slots to live sports, are frequently highlighted as strengths. Users also appreciate the anonymity provided by cryptocurrency transactions, which appeals to privacy-conscious gamblers.
• Negative Feedback: Negative reviews often focus on issues with transparency, payout delays, and customer support. One user on Reddit complained, “I won a decent amount, but getting my payout took weeks, and customer service kept giving me the runaround.” Others have reported sudden account suspensions or difficulties verifying identities, particularly when attempting to withdraw large sums. Allegations of rigged games have also surfaced, with a user on X stating, “Stake’s slots feel manipulated; I’ve lost way more than seems fair.” These complaints, while not universally verified, contribute to a perception of unreliability.
• Influencer Controversy: Stake’s reliance on influencers has drawn mixed reactions. While some users are drawn to the platform through endorsements by figures like Drake, others criticize these partnerships as predatory, accusing Stake of using celebrity appeal to lure inexperienced gamblers. A post on X highlighted Stake’s lax verification processes, claiming it allows “fake IDs to be used to create profiles without limits on betting.”

Risk Considerations

Stake faces several risks across financial, reputational, and legal domains:

• Financial Risks: The $41 million cyberattack in 2023 exposed significant vulnerabilities in Stake’s cybersecurity, potentially deterring users from depositing funds. Ongoing concerns about payout reliability and account security could further erode user trust, impacting revenue. The reliance on volatile cryptocurrencies also exposes Stake to market fluctuations, which could affect its financial stability.
• Reputational Risks: Allegations of game rigging and unethical marketing have damaged Stake’s public image. Social media platforms like X amplify these criticisms, with users accusing Stake of exploiting vulnerable audiences. The association with high-profile figures, while initially beneficial, risks backfiring if these partnerships are perceived as endorsing irresponsible gambling.
• Legal Risks: The lawsuits against Stake US pose a significant threat, particularly if courts rule that the platform’s operations violate gambling laws. Penalties or operational restrictions in key markets like the U.S. could severely limit Stake’s growth. Additionally, its Curaçao-based licensing may not provide adequate protection against international regulatory scrutiny, especially in jurisdictions with strict gambling laws.
• Operational Risks: Stake’s dependence on cryptocurrency makes it a prime target for cybercriminals, as demonstrated by the Lazarus Group attack. Weaknesses in identity verification and customer support processes also increase the risk of fraud and user dissatisfaction.

Business Relations and Associations

Stake has cultivated high-profile partnerships to boost its brand visibility:

• Celebrity Endorsements: Stake has partnered with Canadian rapper Drake, who has promoted the platform through live streams and social media. These endorsements have helped Stake reach a younger, global audience but have also drawn criticism for glamorizing gambling.
• Sports Sponsorships: Stake is a sponsor of the Alfa Romeo F1 team and Everton Football Club, leveraging these partnerships to enhance its brand legitimacy. These associations align Stake with high-energy, competitive industries, but they also attract scrutiny from regulators concerned about gambling advertisements in sports.
• Influencer Marketing: Stake collaborates with numerous social media influencers, including former ambassadors like BitBoy and Cassie. These partnerships have been controversial, with accusations that influencers fail to disclose the risks of gambling, potentially violating advertising regulations.
• Operational Partners: Stake operates under Medium Rare N.V., a Curaçao-based entity, and uses cryptocurrency payment processors to facilitate transactions. Its reliance on third-party payment systems and blockchain technology exposes it to risks associated with these partners’ security and reliability.

Legal and Financial Concerns

Stake’s legal and financial landscape is fraught with challenges:

• Lawsuits: As of April 2025, Stake US is embroiled in multiple lawsuits alleging illegal gambling operations. Legal filings argue that Stake’s marketing misleads users by presenting gambling as low-risk entertainment, violating consumer protection laws. These cases could result in fines, operational bans, or mandatory changes to Stake’s business practices.
• Cyberattack Fallout: The 2023 theft of $41 million by the Lazarus Group has not resulted in reported legal action against Stake, but it has raised questions about the platform’s liability for user losses. The lack of transparency regarding recovery efforts or compensation further complicates its financial standing.
• Regulatory Scrutiny: Stake’s Curaçao licensing allows it to operate with minimal oversight, but this has drawn attention from regulators in stricter jurisdictions. For example, the U.S. and U.K. have stringent online gambling laws, and Stake’s operations may face restrictions or bans if deemed non-compliant.
• Financial Stability: There are no public records of bankruptcy or unpaid debts, but Stake’s reliance on cryptocurrency introduces volatility risks. The 2023 cyberattack likely strained its financial reserves, and ongoing legal battles could further impact its liquidity.

Risk Assessment Table

Expert Opinion

Stake represents a bold but risky venture in the burgeoning crypto-gambling industry. Its strengths lie in its innovative use of cryptocurrency, which enables fast, anonymous transactions, and its aggressive marketing, which has built a strong brand presence. Partnerships with figures like Drake and sports organizations have amplified its reach, particularly among younger demographics. The platform’s diverse game offerings and sleek interface make it a competitive player in the online gambling market.

However, Stake’s weaknesses are significant. The 2023 cyberattack exposed critical security flaws, undermining user trust and highlighting the risks of storing large sums of cryptocurrency. Allegations of game rigging, while unproven, fuel skepticism about the platform’s fairness. The lawsuits against Stake US pose a substantial threat, as adverse rulings could restrict its operations in a key market. Moreover, its reliance on influencer marketing and lax regulatory oversight raises ethical and legal concerns, particularly regarding the targeting of vulnerable audiences.

Pros:

• Innovative use of cryptocurrency for seamless transactions.
• Strong brand presence through celebrity and sports partnerships.
• Wide range of gambling options appealing to diverse users.

Cons:

• Significant cybersecurity vulnerabilities, as evidenced by the 2023 breach.
• Legal risks from ongoing lawsuits and regulatory ambiguity.
• Reputational damage from allegations of rigging and unethical marketing.

Cautionary Advice: Potential users should approach Stake with caution due to its history of security breaches and legal challenges. Verify the platform’s licensing and compliance in your jurisdiction before engaging. Be wary of promotional offers that downplay gambling risks, and ensure robust personal cybersecurity measures when using cryptocurrency-based platforms. For investors or partners, Stake’s legal and reputational risks warrant thorough due diligence, particularly regarding its ability to address cybersecurity and regulatory concerns.

Key Citations

• FBI Release on Stake.com Cyberattack
• Lawsuit Against Stake US
• Cybercriminal.com Investigation
• Trustpilot Reviews
• Reddit User Feedback
• X Post on Game Rigging Allegations: @yourfriendSOMMI, January 8, 2024
• X Post on FTC Guideline Violations: @OOF_ItsAndy, November 29, 2024