Class-Action Lawsuit Alleges Deceptive Marketing and Unlawful Gambling Practices by Drake, Adin Ross, and Stake.us
A class-action lawsuit has been filed in Missouri against rapper Drake, livestreamer Adin Ross, and online casino Stake.us, alleging the promotion of an "unlawful gambling platform" and deceptive marketing practices. The lawsuit claims that the defendants profited from encouraging users to play on Stake.us while misrepresenting it as a harmless social casino. The plaintiff alleges that the platform is highly addictive and facilitates real-money gambling, causing harm to vulnerable individuals, especially those prone to gambling addiction and younger consumers targeted through free play marketing.
The complaint focuses on Stake.us's dual-currency system, which includes virtual "gold coins" and "Stake Cash." While gold coins are non-redeemable, Stake Cash can be used for casino games and exchanged for US dollars at a 1:1 rate. The lawsuit argues that this setup allows the platform to circumvent state gambling laws and expose users to financial risks.
Stake.us, founded by billionaires Ed Craven and Bijan Tehrani in 2017, is marketed as a social casino for US players but is accused of leading users to real-money gambling. The lawsuit also alleges that Drake and Ross marketed the site to teenagers and vulnerable groups while gambling with house money provided by Stake. The plaintiff claims personal financial losses due to these deceptive practices and seeks relief under Missouri law for fraudulent and unfair business practices.
Drake, with 142 million Instagram followers, has reportedly promoted Stake.us multiple times, including videos showing large account balances. Representatives for Drake, Ross, and Stake.us have not yet responded to requests for comment.