Less than a year ago, Drake was live streaming while playing cryptocurrency slot machines when his initial balance of $3.5 million plummeted to $420,000 in 82 minutes. What happened next is quite revealing about how the Stake business really works and how much this crypto casino empire that generates billions is worth.

While Drake was publicly begging for luck during the stream, Ed Craven, co-founder of Stake, appeared on screen from Melbourne. Not only did he encourage him, but he also topped up his account with an additional $500,000. Then, Drake’s balance recovered to $2.2 million in just over an hour. The numbers are staggering, but the most interesting part is what Bloomberg uncovered afterward: they analyzed 500 hours of live streams and found that Drake won jackpots four times more often than average. Coincidence or something more.

These elite streamers are not ordinary players. They receive contracts worth millions to stream on Kick, the streaming platform Craven launched after Twitch banned cryptocurrency betting. Some, like Trainwreckstv, have received $360 million in deposits in just 16 months. Adin Ross, Kick’s most popular influencer, has received at least $78 million in ETH since 2021. The obvious question is: where does all this money come from?

According to former employees and people close to the contracts, some streamers use platform funds, not their own money. One of them, Trainwreckstv, publicly admitted it, saying he chose the “deposit” protocol where Stake provides the balance but you can’t withdraw everything you win. It’s basically a very expensive motivational ad.

Now, how much is Stake really worth? The numbers are impressive: 127 million monthly visits, $10 billion in monthly bets, approximately 4% of Bitcoin’s annual volume, and in 2024, reported $47 billion in revenue after bonuses. In December, Craven announced that the annual deposit volume reached $18 billion. This is a billion-dollar business with little regulation, based in Australia but registered in Curaçao.

What makes this more questionable is how it operates. It’s blocked in huge markets like the United States, the United Kingdom, and France. It’s even banned in Australia, where Craven lives. But people use VPNs to bypass restrictions, and Stake has a “lotteries” version in the U.S. using virtual currencies. Minimal KYC, maximum exposure, especially for minors.

A case that sums it all up is Chris, a Swedish guy who started playing at 15. Without age verification, he deposited 14 bitcoins, worth about $100,000 at the time, without anyone from Stake contacting him. During the pandemic, he spent between $10,000 and $40,000 weekly on bitcoin, playing at school. Craven was his personal VIP manager. When Chris requested self-exclusion, Stake gave him a 24-hour reflection period. Then, when permanent exclusion was activated, Craven simply unlocked his account. Over seven years, Chris lost about $1.5 million. If he hadn’t gambled those cryptocurrencies, they’d be worth between $15 and $20 million today.

Stake’s corporate structure is complex: Medium Rare NV in Curaçao, the licensed entity, Stake Gaming and Easygo in Australia, payment processing in Cyprus, developers in the UK, call centers in Serbia, and subsidiaries in Brazil, Italy, and Canada. It’s hard to trace, hard to regulate.

Authorities are finally reacting. The UK shut down Stake. In Curaçao, after years of pressure, the prosecutor’s office reached agreements with 12 operators, including Stake, according to sources, with fines of $12,500 each. For Stake, that’s about a minute and a half of revenue from bets. Lawyers are filing class-action lawsuits in the U.S., accusing Stake, Drake, and Ross of deceiving young players by showing statistically improbable wins as if they were normal.

Meanwhile, Craven lives in a mansion in Melbourne he bought in 2022 for AUD 80 million, with a fleet of Land Rovers parked outside. Drake briefly suspended his streams after criticizing Stake for not allowing him to withdraw funds, but he returned, announcing he would share bonuses with the audience. Ross signed with a competitor for $100 million after being sued.

The real question isn’t just how much Stake is worth in numbers. It’s what the true cost of a business built on the illusion of unlimited money, incredible prizes, and no apparent consequences really is. It works for the streamers. But for thousands of minors and problem players, the consequences are very real.