The founders of the cryptocurrency casino Stake.com are expanding their investment in PointsBet (OTC: PBTHF).
Australian billionaire entrepreneurs Ed Craven and Bijan Tehrani, who co-founded Stake.com, informed the Australia Securities Exchange (ASX) last Friday that they have increased their holdings in PointsBet to 16 million shares, surpassing 5% of the bookmaker’s outstanding shares. This marks an increase from their 4.2% stake at the end of December.
Craven and Tehrani have been acquiring their stake in PointsBet through Easygo Gaming, a Melbourne-based gaming software company.
Stake.com operates as a gray-market entity, indicating that while it lacks the official licensing and regulation of a white-market operator, it is considered safer for consumers than a black-market operator.
Uncertainty Over Potential Acquisition of PointsBet
By investing in PointsBet, Craven and Tehrani have shown an interest in capitalizing on traditional forms of wagering, which aligns with PointsBet’s operations. However, it remains unclear whether the duo intends to acquire PointsBet entirely.
Although DraftKings (NASDAQ: DKGN) and privately held Fanatics engaged in a minor bidding war for PointsBet US, that business was sold at a loss. Nevertheless, PointsBet remains profitable in its home market and retains its Canadian operations, which are also seen as valuable assets. It is still uncertain whether Craven and Tehrani aim to gain majority control of PointsBet or plan to act as activist investors.
Potential Synergies Between Stake.com and PointsBet
Despite being primarily known as a cryptocurrency casino, Stake.com also operates a sportsbook. This suggests that Craven and Tehrani are familiar with the sports betting industry, presenting potential synergies between Stake.com and PointsBet.
While the founders of Stake.com have not explicitly stated an intention to acquire PointsBet, their company has itself been the subject of takeover rumors. Nearly a year ago, there were reports that Stake.com was considering acquiring Chicago-based Rush Street Interactive (NYSE: RSI), another gaming company often linked to takeover speculation, though no deal was finalized.
Explore Singapore’s best online betting site with Octabet betting news. Begin your journey to victory today! Register now!