Lisa Cheban | 14 September, 2023 16:37 | Last update on: 14 September, 2023 16:37
Stake.com, a leading Drake-branded online casino, faces an ugly lawsuit in Australia. This was after Stake, a shares trading platform in the country, sued the casino operator for copyright infringement. The case, filed in Australia’s Federal Court, claims that the name and branding of Stake.com could confuse Stake’s customers and tarnish the reputation of the shares trading platform.
Founded in 2017, Stake.com is a Curacao-licensed online casino platform with a sister sweepstakes casino in the United States, Stake.us. The gambling and betting brand is famous for its modern approach and preference for cryptocurrency gambling. In July this year, the gambling entity announced its plan to apply for a gaming license in Australia.
However, the Australian Associated Press reports that the casino operator is facing a lawsuit from Stake, a Sydney-based stock trading platform. Stake contends that the names’ closeness will be problematic for its business operators. The court has its work cut out because both businesses were founded in 2017.
According to Stake’s website, hellostake.com, customers of the trading platform can invest in a range of equities and securities. The platform is well-known for its accessibility and user-friendly interface, primarily concentrating on brokerage activities in the United Kingdom, Australia, New Zealand, and Brazil.
The legal counsel of the share trading platform contends that despite the online gaming site’s separate business operations, users may mistakenly conclude that both organizations are associated or connected due to branding similarities. According to the lawsuit, the Stake.com brand in Australia may damage the good name Stake has in the financial industry.
The trading platform claims casino operator’s network of websites contains “false” information that may mislead customers. The lawsuit mentions Stake.com’s e-Commerce store, which sells goods under the Stake label instead of Stake.com.
There are many instances of trademark infringement involving names with similar meanings clashing in many industries. However, any potential lawsuit is likely to be determined by the degree of the name similarity, service overlap, and likelihood of consumer confusion. And, of course, the older company is likely to carry the day.
Stake.com was founded by Ed Craven and Bijan Tehrani in 2017, and the company has quickly risen to prominence. However, it is fair to say that it has not been the smoothest ride for the operator, facing its decent share of lawsuits.
Last year, the company battled a $400 million lawsuit filed by a business associate of one of the co-founders. The complainant said they were wrongfully fired from the company without fair compensation.
In response to the case, Stake.com commented: “This filing is a desperate attempt to spread false information and extort money over which [the applicant] has no claim. The company does not intend to give in to this sort of blackmail, and are confident that these utterly frivolous allegations will be dismissed by the court in due course.”