A class action lawsuit has been filed in the 16th Circuit Court of Jackson, Missouri, accusing crypto casino Stake, rapper Drake, and influencer Adin Ross of promoting illegal online gambling in violation of state laws.
Key Takeaways
- The lawsuit claims the celebrities used "house money" to mislead viewers about gambling wins and losses.
- The case comes as Missouri prepares to launch legal online sports betting on Dec. 1.
The suit, led by plaintiff Justin Killham, claims the conduct of the company and celebrities "threatens the welfare of Missouri residents and especially its young people," emphasizing the alleged targeting of minors and vulnerable audiences.
Stake is alleged, according to court filings, to be paying Ross and Drake millions of dollars to livestream casino sessions under what plaintiffs call "deeply fraudulent pretenses." The complaint asserts that both figures often gamble with company-provided "house money," giving a false impression of personal risk to entice fans.
The filing discusses how Stake has publicly promoted Drake as both a partner and an ambassador, including web content that discusses how he went "from gambler to partner."
The lawsuit says that Drake has a huge online following, with 142 million followers on Instagram and 38 million on X. It says that his livestreams "glamorize gambling to millions of impressionable fans” and that Stake leverages his fame to get young people to play, especially in states like Missouri, where online casino gaming is still against the law.
While crypto casinos remain barred, the Missouri Gaming Commission recently issued temporary licenses to nine Missouri sports betting operators ahead of the state's official launch on Dec. 1.
Drake's Stake partnership draws more attention
Days after Drake's 39th birthday on Oct. 24, when Stake supposedly gifted him $1 million, the controversy grew. A popular video showed the rapper being surprised when the amount showed up on his laptop, which led to a lot of talk about his ties to the platform.
Drake's net worth is thought to be $400 million, and he makes $70 million a year. He has been working with Stake since 2022 on a deal that is said to be worth $100 million a year.
The Grammy-winning singer has streamed betting sessions on Stake's website several times, and they have often gotten millions of views. On his birthday, he also got word that he had received 16 new RIAA certifications, including six diamond singles, including "Nice for What" and "The Motto."
Even though people are talking about it online, neither Drake nor Stake has said anything officially about the supposed $1 million present.
