Drake’s ties with Stake.us, an online social casino, are under serious legal examination. A recent federal lawsuit alleges the rapper assisted in promoting an illegal online gambling operation and possibly funneled money to inflate his music streaming figures.
Plaintiffs LaShawnna Ridley and Tiffany Hines filed a class action lawsuit last week in a Virginia federal court against Stake.us’s parent company, Sweepsteaks Limited, along with Drake, streamer Adin Ross, and George Nguyen, reportedly involved in the alleged scheme.
The lawsuit claims that these defendants misrepresented Stake, while being compensated for its promotion, causing “harm on consumers across the Commonwealth who have lost real money chasing gambling wins on the Stake platform.”
Additionally, it accuses Drake, Ross, and Nguyen of transferring money among themselves using Stake’s ‘Tipping’ program.
The plaintiffs assert that their actions violate the Racketeer Influenced and Corrupt Organizations Act (RICO) and Virginia’s consumer protection laws. They seek at least $5 million, refunds for users, the return of allegedly earned profits, court orders to halt the supposed misconduct, and further damages under federal law.
“Stake.us preys on consumers in Virginia and nationwide who are attracted to real money gambling, exposing them to significant risks of addiction and jeopardizing their financial stability,” the lawsuit claims.
What Is Stake.us and How Does It Operate?
A crucial part of the lawsuit revolves around how Stake.us functions. The company presents itself as a social casino, allowing users to purchase “Gold Coins” for online games like slots and poker. While these coins can’t be cashed out, users also gain access to “Stake Cash” through bundles of Gold Coins, daily login bonuses, and promotions.
Users can redeem their Stake Cash for real money after meeting certain criteria, like wagering it multiple times. The lawsuit argues that this process aligns Stake.us with real-money gambling—a practice outlawed in Virginia and many states.
What Are the Allegations Against Drake?
The complaint further details that Drake and Ross were compensated by Stake to promote the platform. They allegedly participated in livestreams showcasing gameplay with funds provided directly by the company.
“In other words, although Drake and Ross seemed to wager with their own Stake Cash, it was actually supplied by the house,” the lawsuit states.
Drake inked a lucrative deal with Stake in 2022, reportedly worth $100 million per year. Although he had raised concerns about withdrawal issues, a recent Instagram post suggested those problems might have been resolved.
How Are Streaming Numbers Related to the Lawsuit?
Beyond the gambling allegations, the lawsuit contends that Drake, Ross, and Nguyen allegedly funneled proceeds through Stake’s tipping feature to fund bots aimed at artificially inflating Drake’s streaming figures on platforms like Spotify.
This isn’t the first time Drake’s connection with Stake.us has faced scrutiny. A previous lawsuit filed in Missouri also named Drake and Ross, echoing claims of misrepresentation regarding Stake.us’s gambling activities.
So far, Stake.us and representatives for Drake have not commented on requests for feedback from Gizmodo.
As this unfolding saga highlights, the intersection of celebrity endorsements and online gambling carries significant risks—not just for the stars involved, but for everyday users drawn in by flashy promotions and promises of quick wins. How do you feel about such endorsements? Share your thoughts below!