Australian billionaires Ed Craven and Bijan Tehrani, the founders of the cryptocurrency gambling platform Stake.com, have expanded their investment portfolio with a significant increase in their stake in ASX-listed online bookmaker PointsBet. This move marks a notable shift in their investment strategy, reflecting a growing interest in the legal gambling sector in Australia.
Increasing Stake in PointsBet
Through their investment vehicle, Easygo Gaming, Craven and Tehrani now own over 16 million shares, representing 5% of PointsBet. This is an increase from their previously reported 4.2% stake in December, according to the Australian Financial Review. An Easygo Gaming spokesperson stated that this investment demonstrates confidence in PointsBet’s long-term strategy and recent trading performance.
Easygo Gaming’s Investment Strategy
Easygo Gaming has a diverse investment portfolio spanning gaming, entertainment, media, wagering, and technology sectors. The spokesperson highlighted that Easygo Gaming is actively seeking new opportunities within the global media and entertainment landscape.
Diversifying Assets in the Gambling Sector
Since last year, Craven and Tehrani have been diversifying their assets into Australia’s legal gambling sector. They engaged in discussions with the Northern Territory Racing Commission (NTRC) but did not formally apply for a wagering license. Additionally, they filed a trademark application for the Stake Gaming brand, which led to legal action from another company with the same name.
About Stake.com
Founded in 2017, Stake.com is one of the world’s largest online casinos, processing hundreds of billions of dollars in bets on sports, virtual table games, and online slots. Operating globally from Melbourne and registered in Curacao, Stake.com has made significant strides in brand recognition.
Last year, it signed Canadian rapper Drake as a brand ambassador and secured sponsorship deals with the Alpha Romeo F1 team and English Premier League side Everton FC. Despite its global reach, Stake.com’s games are not available to Australian punters due to restrictions on cryptocurrency wagering.
PointsBet’s Growth and Future Prospects
PointsBet, based in Melbourne, is focused on increasing its market share in the Australian online betting market. After selling its US business to FanDuel for $225 million last year, CEO Sam Swanell informed shareholders in July that the company aims to be EBITDA-positive by the next financial year. The company recently revised its forecasted normalized earnings loss for FY21 to $4 million to $6 million, down from the previous guidance of $9 million to $14 million, citing strong trading performance, operational efficiencies, and enhanced productivity.
Despite a complex technical and operational migration, PointsBet has shown strong results and continues to invest in product development. With an approximate 5% online market share, PointsBet is on a positive trajectory.
Challenges and Market Conditions
EasyGo’s strategic investment in PointsBet comes at a challenging time for the wagering sector, which is facing economic headwinds and potential advertising restrictions during sports events. However, the confidence expressed by Easygo Gaming in PointsBet’s strategy and performance indicates a strong belief in the company’s future growth and stability.
The increased investment by Ed Craven and Bijan Tehrani in PointsBet through Easygo Gaming highlights their strategic shift towards the legal gambling sector in Australia. With PointsBet showing promising growth and resilience amidst market challenges, this move underscores the potential for significant returns in the evolving landscape of online wagering.
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