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Drake is being sued by a Missouri man who claims the music superstar, along with influencer Adin Ross, received “unjust enrichment” from the allegedly “misleading” sweepstakes casino Stake.us.
In a 34-page class action lawsuit obtained by ROLLING STONE, plaintiff Justin Killham says Drake, Ross and Stake.us actively misled consumers by promoting Stake.us as a “harmless social casino” – even though, according to the lawsuit, it is a “highly addictive” and “illegal gambling platform.”
Accusation: misleading and unfair business practices
The lawsuit, filed Monday (October 27) in Jackson County District Court, accuses the defendants of “misleading, fraudulent and unfair” practices that violated Missouri law and caused real financial loss to vulnerable users.
“Stake’s deceptive trade practices have caused serious harm to Missouri’s vulnerable, particularly those vulnerable to gambling addiction and younger consumers targeted by Stake’s ‘Free Play’ marketing,” the lawsuit says.
At the center of the allegations is a dual currency system that is supposedly intended to conceal real gambling. According to the lawsuit, Stake.us combines virtual, supposedly non-redeemable “gold coins” with a second type of token called “Stake Cash.” This could be used for casino games and paid out for real money – a “clear vehicle for real money gambling,” according to the accusation.
Critics describe this model as a legal loophole. Political reactions have already followed: California Governor Gavin Newsom signed a bill at the beginning of October to prevent similar practices in the future. (Attempts to reach representatives from Drake, Ross and Stake were initially unsuccessful for ROLLING STONE.)
Million dollar deals and live streams under false pretenses
Drake and Ross are considered prominent endorsements of Stake and are expected to receive millions for their collaborations with the company. According to the lawsuit, a lot of the live streams they use to promote the platform are staged.
“When Ross and Drake purport to gamble online at Stake.com, they often do not do so with their own money, despite telling the public otherwise,” the lawsuit says.
The influencer marketing is specifically aimed at teenagers and young adults – both in Missouri and in other US states.
Drake’s social media video sparks controversy
Notable: The new class action lawsuit was filed the same day that Drake posted a video on social media of himself running through a mansion to check his $1 million balance on his Stake.com account.
“Money in the vault???????????? @stake Are you telling me we’re back?” the rapper wrote on Instagram – a reference to his public dispute with Stake in August, when he accused the platform of blocking his withdrawals.
Stake replied curtly, “We never left. Happy birthday.” Drake celebrated his 39th birthday on October 24th.
A case with a signal effect
The lawsuit against Drake and Stake.us is likely to have wide repercussions in the online gambling industry. The process highlights the gray areas between “social casinos” and real money platforms – and asks the question of how much responsibility celebrities bear when they advertise risky business models.