Missouri Lawsuit Filed Against Stake.us, Drake, and Adin Ross

Rapper Drake, together with internet influencer Adin Ross, is currently in hot water over his association with Stake US. According to multiple reports, the two popular celebrities, together with Stake US, are the subject of a 34-page class action complaint alleging that they have misled players when they promoted the gambling site. 

The plaintiff, Justin Killham, alleges that he was misled into thinking that the platform offered “harmess social casino” entertainment when in fact, it was “highly addictive”, and Stake is an “unlawful gambling platform. Both Drake and Ross were served with “unjust enrichment”, while Stake US gets hit by another lawsuit.

Playing at Stake US Isn’t Harmless After All, Says Plaintiff

In a 34-page class action complaint, plaintiff Justin Killham argues that Drake, Ross, and Stake US actively misled its players through deceptive marketing. Filed October 28th in Jackson County Circuit, the plaintiff hits the defendants for their “deceptive, fraudulent and unfair” practices that violated state laws, and caused gambling losses to at-risk players. 

The lawsuit further stated that “Stake’s deceptive trade practices have inflicted severe harm on the vulnerable in Missouri, and especially on individuals prone to gambling addiction and younger consumers targeted through Stake’s ‘free play’ marketing”.

Stake’s Dual-Currency System Violates State Law

In addition to Drake and Ross’ participation, the complaint also targets Stake’s dual-currency system, a model used by most sweepstakes casinos. In the typical dual-currency model, players use Gold Coins (GCs) to play casino-style games for free, but these can’t be redeemed for real-world prizes. 

Then, there are the Sweeps Coins (SCs) that players can earn while playing, which can be redeemed for prizes, like cash or vouchers. At Stake, players use Gold Coins and Stake Cash, where the latter can be wagered on games and exchanged for US dollars at a 1:1 rate. The lawsuit explains that this arrangement is similar to real-money gambling.

Stake’s use of a dual-currency model was considered a legal loophole by critics and has been highlighted by legislators. Several states have already acted on this concern, including California, after Governor Gavin Newsom signed AB 831, effectively banning the operations of sweepstakes casinos by January 1, 2026.

Influencers Are Also Taking the Heat in the Ongoing Campaign Against Sweepstakes Casinos

Sweepstakes casino operators and vendors aren’t the only ones feeling the heat. Even influencers like Drake and Adin Ross are no longer exempt from these inquiries and lawsuits. Drake and Ross are two of the most popular gaming influencers and are considered high-profile promoters of Stake. While they are paid millions for marketing the company through streams, these are considered by some as “deeply fraudulent”.

The filing hit the deceptive tricks of Ross and Drake, who often stream their betting activities without risking their own money. Stake’s influencer marketing approach, says the plaintiff, is directed at at-risk players, including teenagers.

REFERENCES:

• California AB 831
• Rolling Stone
• Music Times.