Stake’s online gaming platform, which has been a big hit in the US, is being sucked into a new class action lawsuit, along with Canadian rapper Drake, a buddy of the brand for a long time.

On 31 December, a federal class-action lawsuit was filed in the Eastern District of Virginia with clear claims that created serious concern among the involved parties. This case names online gambling platform Stake.us, music artist Drake, online content creator Adin Ross, and associate George Nguyen as direct defendants. The lawsuit states that these four parties joined a planned and coordinated scheme involving illegal online gambling, misleading advertising, and improper handling of money. Two residents from Virginia brought the case forward with strong concern about their experience on the platform. They filed the complaint on behalf of a proposed nationwide group of users who shared similar gambling activity on Stake.us. These users say they were misled into gambling real money on Stake.us through platform design and promotion methods. According to the lawsuit, Stake.us has operated as an illegal online casino since at least 2022.

The filing explains that Stake.us is a version of the international platform Stake.com made for users inside the United States. Plaintiffs argue that this platform was created to avoid federal and state gambling laws through its operational setup. Although Stake.us is promoted as a social casino offering free games using virtual currency, the lawsuit claims this description is misleading. Based on the complaint, users are pushed to buy bundles of virtual credits during gameplay. These bundles include another type of credit that users can redeem for prizes and that links directly to the US dollar. The lawsuit states that this redeemable currency carries a one-to-one value with real money. Because of this setup, plaintiffs argue users are gambling with real money despite claims of entertainment-only play.

The lawsuit explains that this system allows real-money gambling while presenting itself as free play to users. This difference forms a central part of the legal case brought before the court. Plaintiffs use this point to support claims under federal racketeering laws and Virginia consumer protection rules. Similar arguments appeared in recent lawsuits against Stake and its promoters, including a case filed in Missouri in October.

The complaint also claims that Drake and Adin Ross acted as paid promoters for Stake.us. It says both regularly livestreamed gambling sessions on the platform using funds supplied by Stake. According to the plaintiffs, these livestreams showed large wins while failing to explain financial risks or the source of the money. The lawsuit further accuses defendants of using Stake.us features like tipping and internal transfers to move money. Plaintiffs state this system worked without regulation and made tracking money sources and destinations more difficult.

Fudging the Numbers

One claim in the lawsuit centres on music streaming data and triggers a serious reaction from the plaintiffs. They allege that Drake used funds moved through Stake.us to help pay for systems that increase music streaming numbers. These systems are referred to as bots or streaming farms and are said to raise play counts on major platforms. The filing states that money routed through Stake.us paid third parties who ran these artificial streaming systems. The lawsuit claims the purpose was to influence music charts, recommendation systems, and royalty payments. Plaintiffs argue that this behaviour altered fair competition across the music industry. The complaint points to several large transfers that allegedly passed through Stake.us. These include high-value tips during livestreams and significant promotional giveaways. According to the lawsuit, these payments show how platform structure may hide payment purpose and identity.

In total, plaintiffs accuse defendants of forming a continuing enterprise combining illegal gambling, deceptive promotion, and hidden financial activity. They claim this behaviour violates the federal Racketeer Influenced and Corrupt Organisations Act, known as RICO. Plaintiffs ask the court to certify the case as a class action. They request financial damages, including increased damages allowed under RICO, and seek the return of money and profits. They also ask the court to stop Stake.us from operating in the United States.