Key Takeaways:

• The lawsuit alleges that Drake, Adin Ross, and Stake promoted unlawful playing and manipulated streaming numbers.
• Plaintiffs say Stake’s tipping system enabled crypto transfers and synthetic performs of Drake’s music.
• The case seeks over $5 million in damages and follows related lawsuits filed in Missouri and New Mexico.

Drake, streamer Adin Ross, and Stake have been named in a civil RICO class motion alleging unlawful playing promotion and inflated streaming of Drake’s music.

As music/music-news/drake-adin-ross-online-casino-stake-lawsuit-1235493062/”>Rolling Stone revealed, the lawsuit, introduced on by LaShawnna Ridley and Tiffany Hines, was filed on Wednesday (Dec. 31) within the U.S. District Court for the Eastern District of Virginia. The criticism named Stake’s operator, Sweepsteaks Ltd., together with Drake, Ross, and George Nguyen. It follows music/a/jose-martinez/drake-adin-ross-stake-sued-in-new-mexico-deceptive-gambling-practices”>related filings in Missouri and New Mexico.

The plaintiffs argued that Stake’s sweepstakes-style “social casino” setup capabilities like real-money playing by way of a dual-currency system (digital “Gold Coins” plus “Stake Cash”), which the submitting says might be cashed out. They additionally mentioned Drake and Ross promoted the platform via livestreamed playing classes and giveaways.

The swimsuit additionally focused Stake’s user-to-user “tipping” function, which the criticism described as an “unlimited” and unregulated cash transmitter. It additionally claimed the defendants used tricks to switch funds amongst themselves, then financed synthetic streaming (termed as “botting” in some reviews), streaming farms, and extra. Nguyen was portrayed as a dealer and operational facilitator who allegedly dealt with cryptocurrency flows and coordinated paid “clipping” campaigns and amplification methods on social platforms, together with X.

The court docket paperwork cite a number of examples, together with an alleged $100,000 tip switch between Ross and Drake in 2023, the “Drizzmas” livestream from December 2024, and a $220,000 automotive Stake reportedly gifted to Ross shortly earlier than the lawsuit was submitted. It additionally claimed encrypted transfers have been offered as giveaways that weren’t broadly obtainable. Another outlet, Capital Xtra, cited an unproven 2024 streaming spike tied to “No Face.” Notably, the submitting was reported after a latest livestream by which Drake reportedly gave away a portion of his Stake earnings.

The lawsuit seeks not less than $5 million in damages and goals to signify Virginia residents who misplaced wagers utilizing Stake Cash inside the final three years, whereas additionally bringing claims below the Virginia Consumer Protection Act. The allegations haven’t been confirmed in court docket.

As Rolling Stone additional defined, the doc landed amid rising scrutiny of sweepstakes-style casinos, a mannequin critics name a loophole. Their report referenced a California invoice signed by Gov. Gavin Newsom final 12 months that focused the apply. A consultant for Drake declined to touch upon the accusations.